As a seasoned analyst with over a decade of experience in the financial markets, I have seen my fair share of market fluctuations and trends. After carefully analyzing Bitcoin’s current position, I must admit that the recent drop has left me slightly concerned.
Bitcoin‘s current price remains depressed due to the recent fall, with no definite signs pointing to where it might head next. Nevertheless, certain indicators suggest it may plummet more if it fails to surpass the $60,000 mark in the near future.
As an analyst, I’d like to bring your attention to a notable event in the digital asset market that transpired on Tuesday. The largest digital asset experienced a significant decline, falling from approximately $63,000 to $58,000. However, it managed to regain some ground and currently hovers around the $60,000 mark.
Technical Analysis
By TradingRage
The Daily Chart
Currently, the asset has failed to hold above both the 200-day moving average and the $64K resistance level on a daily basis. Additionally, it has fallen below the $60K mark, suggesting a potential move towards the $56K support area.
In simpler terms, the Relative Strength Index (RSI) has fallen below 50, suggesting that the positive momentum may be turning negative again. Given the present market situation, it’s possible that the price could dip down to around $56,000, and potentially even reach the support zone at $52,000.
The 4-Hour Chart
On the 4-hour chart, it’s evident that the market has struggled to push beyond the $64K resistance point, signaling a potential reversal. If the current downward trend continues and the price fails to regain the $60K level, a decline toward the $56K region seems likely.
Yet, if it climbs back above the $60K level, investors could be optimistic that it can again run toward the $64K resistance zone and potentially higher toward $68K in the coming weeks.
On-Chain Analysis
By TradingRage
Bitcoin Funding Rates
As Bitcoin’s market setup suggests potential for further price decreases, there’s a noticeable change in perception among traders regarding the broader cryptocurrency market. This shift is also reflected in the trends observed in the funding rates indicator.
This chart demonstrates the BTC funding rates metric, which measures whether the buyers or the sellers are executing their futures positions more aggressively. Positive values point to bullish sentiment, while negative ones indicate bearish sentiment.
As the chart suggests, the Funding Rates show negative values, indicating that the futures market sentiment is now bearish. While this can also be a sign that a price bottom is close, BTC can still drop lower in the short term without sufficient spot demand.
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2024-08-29 15:54