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Bitfinex analysts opined that Bitcoin might retest support around $48,900 as a potential local bottom after crypto markets dropped under $2 trillion. 
Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>), crypto’s bellwether asset, could reach lower levels as worldwide economic uncertainty wiped out over $570 billion in digital asset value since August began. Bitfinex analysts shared that Bitcoin could revisit support after plunging under $50,000 if bullish momentum remained unavailable.&nbsp; 
Following the latest downswing, BTC dominance rose as high as 60%, meaning that Bitcoin made up most of the market and was the leading asset for virtual currencies.&nbsp;As such, additional BTC price declines may also result in dips across the broader cryptocurrency ecosystem. 
BTC’s 24-hour decline already triggered over $1.2 billion in crypto liquidations, per CoinGlass. 
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 <img loading="lazy" decoding="async" width="1114" height="653" src="https://crypto.news/app/uploads/2024/08/BTCUSDT_2024-08-05_17-19-45.png" alt="Bitcoin daily chart"> 
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 24-hour BTC price on Aug. 5 | Source: <a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">crypto.news</a>
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 You might also like: <a href="https://crypto.news/bitcoin-falls-below-50000-is-a-black-swan-coming-to-the-crypto-market/"> Bitcoin falls below $50,000: Is a black swan coming to the crypto market? </a> 
<h2 class="wp-block-heading" id="what-s-driving-the-slump">What’s driving the slump?</h2> 
Global recession concerns <a href="https://crypto.news/crypto-black-monday-why-is-crypto-crashing-right-now/" target="_blank" rel="noreferrer noopener">dragged</a> BTC down to $49,000 during a historically challenging month for cryptocurrencies. On average, BTC has shed 7.8% and 5.5% in August and September, respectively, in previous years. 
However, Bitfinex analysts said the impulse drop was macro-driven, not caused by on-chain factors or technical reasons.&nbsp; 
“The crash was primarily, if not entirely, driven by macroeconomic factors. It was triggered by the Bank of Japan’s carry trade crisis, the disappointing US employment report, and a rise in unemployment,” Bitfinex analysts noted. 
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 <img loading="lazy" decoding="async" width="2644" height="1514" src="https://crypto.news/app/uploads/2024/08/GUJmDwsWcAA0O0Z.jpg" alt="Bitfinex: Bitcoin may restest $48.9k support - 20"> 
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 BTC monthly returns YoY | Source: Glassnode
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<h2 class="wp-block-heading" id="bitcoin-s-bounce-and-possible-next-move">Bitcoin’s bounce and possible next move</h2> 
While BTC began Aug. 5 with double-digit losses, the asset had retraced nearly 50% to the upside and traded over $54,500 at press time.&nbsp;Depending on macroeconomic developments, IntoTheBlock data suggests that gathering strength between $47,800 and $57,800 is crucial for Bitcoin.&nbsp; 
Looser monetary policies may also benefit BTC and cryptocurrencies. Experts and commentators, such as Wharton professor Jeremy Siegel, have <a href="https://crypto.news/wharton-professor-siegel-urges-75bps-rate-cut-as-crypto-plunges/" target="_blank" rel="noreferrer noopener">called</a> for an emergency rate cut from the U.S. Federal Reserve in response to the ongoing global liquidity crisis. 
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 <img loading="lazy" decoding="async" width="1803" height="768" src="https://crypto.news/app/uploads/2024/08/Screenshot-571.png" alt="Bitfinex: Bitcoin may restest $48.9k support - 21"> 
 </picture> 
 <figcaption class="wp-element-caption">
 BTC financial indicators | Source: <a href="https://app.intotheblock.com/coin/BTC/deep-dive?group=financials&amp;chart=inAndOut" target="_blank" rel="">IntoTheBlock</a>
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 Read more: <a href="https://crypto.news/wharton-professor-siegel-urges-75bps-rate-cut-as-crypto-plunges/"> Wharton professor Siegel urges 75bps rate cut as crypto plunges </a>

Bitfinex: Bitcoin may restest $48.9k support

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