Bulls and bears – everyone needs to take note!
Bitcoin (BTC) recently faced a significant price rejection near the $59k mark, resulting in a 2.1% decline over the past 24 hours. This drop has intensified concerns about potential further crypto market capitulation. As Bitcoin lingered around $57,300 early on Friday during the New York trading session, the fear and greed index plummeted to 25, signaling extreme fear among investors.
Dive deeper to find out what analysts are saying about the future of Bitcoin and whether this latest dip is cause for serious concern.
Bears Weigh Heavy
The growing apprehension is rooted in Bitcoin’s formation of a mid-term bearish signal, suggesting a potential dip towards $50k in the upcoming weeks. Over the last four months, Bitcoin has exhibited a possible double top pattern, accompanied by a bearish divergence in the weekly Relative Strength Index (RSI).
Should Bitcoin fail to reclaim support above $61k soon, it’s reasonable to consider $73k as the recent peak.
Institutional Accumulation Amidst Market Uncertainty
On-chain data reveals that institutional investors and large holders have ramped up their BTC accumulation over the past month. Additionally, recent US economic data indicating cooling inflation could pave the way for anticipated interest rate cuts later this year. Long-term Bitcoin holders have been absorbing the increased selling pressure from entities such as the German government and Genesis Trading.
Arkham Intelligence reports that a Bitcoin address linked to Genesis Trading has offloaded 12k BTC in the past month. The bankrupt firm currently holds approximately 33k Bitcoins, valued around $1.9 billion, which is expected to be liquidated in the coming months.
Future Outlook: Resuming the Uptrend?
Crypto influencer Open4Profit predicts that Bitcoin’s price will resume its upward trajectory in the fourth quarter following a period of consolidation.
The analyst suggests that Bitcoin will likely recover the 200-day Moving Average (MA), mirroring a similar pattern observed in October of the previous year.
Also Read: Here’s Why Bitcoin Is Bound To Surpass $60K Next Week!
Only time will tell if the bulls or the bears will reign supreme in the coming months.