Bitcoin (BTC) Price Faces Major Correction Unless New Rally Occurs

Cryptonews Dante Raeburn October 11, 2024

Bitcoin (BTC) Price Faces Major Correction Unless New Rally Occurs

The Bitcoin (BTC) price is in danger of a major correction unless a new rally occurs soon. Recent bearish signals, such as declining institutional demand and whale sell-offs, suggest a potential 75% decline according to trader Peter Brandt. Bitcoin has slipped below $59K recently, while technical indicators suggest a macro bearish trend. Despite these challenges, long-term expectations for Bitcoin remain positive, anticipating a bullish breakout over the coming months.

The current outlook for Bitcoin (BTC) suggests that the cryptocurrency may face a significant price correction unless a new rally materializes within the next two weeks. Following a bullish trend in October, there has been a marked decline in investor confidence, primarily attributed to waning institutional demand. Peter Brandt, a notable trader, has indicated that Bitcoin could potentially decline by 75 percent, having been in a falling trend for the past 30 weeks. Recent on-chain data supports this assertion, revealing that numerous crypto whales are liquidating their holdings, reflecting fear of further capitulation in the market. At present, Bitcoin’s price has slipped below $59K for the first time in three weeks while managing to rebound above a crucial support level of $69K. The prevailing market sentiment remains bearish, with the potential for increased selling pressure anticipated over the weekend, particularly in response to market movements in New York. Technical analysis shows that Bitcoin has closed below the 50 Moving Average (MA) for the first time since mid-September, marking the continuation of a macro bearish trend that began in March. Brandt has highlighted that unless Bitcoin manages to close above $66K in the forthcoming weeks, a significant selloff is likely. It is advised that traders observe the key support level of approximately $48K, as failure to maintain this level could result in further price drops. Despite the current downward trend, long-term market expectations for Bitcoin remain optimistic, with potential for a bullish breakout in the coming months. Factors such as the recent approval of spot ETFs, upcoming U.S. elections, Federal Reserve rate adjustments, and global tensions have yet to catalyze a substantial rally. “It may take several months or more than a year for liquidity to be sufficiently supplied to the market … we can expect a good movement in 2025,” noted CryptoQuant, suggesting a long-term view of recovery and growth. The activities of crypto whales have evidenced a downward trend in buying pressure, as some have sold off over 30,000 BTC—valued at nearly $2 billion—over the past few days. Concurrently, the demand for U.S. spot Bitcoin ETFs has seen a sharp decline, with significant outflows recorded from major ETF issuers. Market participants are urged to remain vigilant, as the crypto space undergoes significant volatility, impacting price trends and investor sentiments.

This article explores the current state of Bitcoin (BTC) and highlights the factors contributing to its price fluctuations. It discusses the bearish trends observed in the market, notably the behavior of institutional investors and crypto whales. The analysis includes insights on technical indicators and market expectations, particularly in light of external events such as regulatory changes and economic conditions that may influence Bitcoin’s future performance.

In summary, Bitcoin’s price faces a precarious situation with the potential for a severe correction unless a robust rally occurs in the immediate future. Current indicators suggest bearish sentiment, evidenced by lower demand from institutional investors and significant sell-offs by crypto whales. Strategic support levels are crucial for traders to monitor, as failures to maintain these thresholds could exacerbate downward trends. However, there remains an optimistic outlook for the long-term growth potential of Bitcoin, contingent on market developments and liquidity within the coming years.

Original Source: www.coinspeaker.com