As a seasoned crypto investor with over a decade of experience navigating the volatile crypto market, I can confidently say that the current Bitcoin (BTC) price trend is causing a bit of anxiety among investors. The recent drop below $57k and the bearish predictions from industry veterans like Arthur Hayes and Peter Brandt are concerning, to say the least. However, I’ve learned over the years that crypto markets can be unpredictable, and what seems like the end can often lead to new beginnings.
Following a drop below an important support of approximately $57,000 during Thursday’s trading, Bitcoin (BTC) is close to recording another week of bearish trends. In the past 24 hours, BTC fell by more than 3% and was trading at roughly $55,360 during Friday’s mid-London session. This decline also influenced the broader altcoin market, with Bitcoin’s price movements being mirrored by Ethereum (ETH) and Solana (SOL).
In simpler terms, it seems that the immediate future of Bitcoin’s price might bring additional struggles, potentially affecting the entire market of alternative cryptocurrencies as well. Additionally, there appears to be a growing trend among investors, as they increasingly move towards investing in web3 for potential higher yields, which suggests a positive relationship between Bitcoin and other altcoins.
Based on Arthur Hayes’ statement, as co-founder of BitMEX, he predicts that the price of Bitcoin might plummet under $50,000 this weekend. In a similar vein, veteran trader Peter Brandt suggests that Bitcoin’s value could fall toward $46,000 soon, following the formation of a large-scale megaphone pattern in its price chart.
As a crypto investor, I’m observing a chart formation that goes by the names of an “inverted expanding triangle” or a “megaphone.” This pattern suggests a potential support level around 46,000. If we hit that mark, it could signal a test of the lower boundary. However, for this bull market to regain its momentum, we need a significant push towards new All-Time Highs (ATHs).
— Peter Brandt (@PeterLBrandt) September 5, 2024
If Bitcoin manages to maintain a consistent close above $65,000 and surges towards $70,000 soon, it could contradict its current bearish forecast. However, Brandt advises traders to be mindful as selling activity is currently stronger than buying interest in the long-term perspective.
Bitcoin Price Impacted by Whales Capitulation
In the turbulent Bitcoin market, it appears that large investors (whales) are speeding up their Bitcoin sales. This rapid selling trend has caused a significant drop in the Bitcoin Fear & Greed Index to around 22%, signaling intense market fear that could lead to further sell-offs or capitulation.
As per the analysis of on-chain data by Lookonchain, a significant investor – often referred to as a ‘whale’ – has transferred approximately 4,544 Bitcoins, equating to around $265 million, into the Binance exchange within the last week. Notably, today this whale investor added another 380 Bitcoins, valued at more than $21 million, to their Binance holdings.
A whale deposited 380 $BTC($21.34M) to #Binance again 4 hours ago.
And the whale has deposited a total of 4,544 $BTC($265M) to #Binance in the past 7 days.
— Lookonchain (@lookonchain) September 6, 2024
Over the past few days, there’s been a consistent pattern in U.S. Bitcoin ETFs, particularly Fidelity’s FBTC, where they’ve seen a significant outflow of funds. According to Coinspeaker, these U.S. Bitcoin ETFs have experienced seven consecutive days with a net withdrawal of funds. On Thursday alone, the total withdrawal was approximately $211 million, with FBTC accounting for around $149 million of that amount.
Market Picture
This year so far, significant Bitcoin events like the halving and the approval of a spot ETF have taken place. Now, everyone’s focus is on the potential Federal Reserve interest rate cut scheduled for September 18th.
It’s anticipated that the current market transition will lead to a more significant bull run during the last quarter of this year, which could continue into the first part of next year.
As a steadfast crypto investor, I’ve been standing firm alongside long-term investors, led by BlackRock. Interestingly, over the past five months, the Bitcoin supply on centralized exchanges has plummeted at an alarming rate, despite the overall pessimistic market sentiments.
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2024-09-06 13:41