bullish

Bitcoin ETF

Bitcoin

Drops

Spot

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-price-drops-sharply" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Drops Sharply</a><br></p>
<p style="text-align: justify">The recent upheaval in the Spot <a href="https://en.bitcoinhaber.net/bitcoin-market-watch-pivotal-support-and-resistance-zones-detailed" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> ETF market has sent shockwaves through the cryptocurrency sector, leading to Bitcoin’s (BTC) failure to maintain its position above the critical $60,000 mark. The digital currency experienced a 3.65% decline in the past 24 hours, landing at $58,515. This significant drop was exacerbated by increased market volatility and growing fears of a potential U.S. recession, resulting in an oversupply.</p>
<h2 id="bitcoin-faces-resistance">Bitcoin Faces Resistance</h2>
<p style="text-align: justify">Earlier this month, Bitcoin witnessed a robust recovery, exceeding $60,000 and crossing the 200-day Exponential Moving Average (EMA). However, the momentum soon faltered. The rally, initially driven by an upward trend line and improved market sentiment seen during “Black Monday,” lost steam. Bitcoin’s price is now encountering substantial resistance from the 50-day EMA.</p>
<p style="text-align: justify">Over the weekend, Bitcoin’s price fall led to heightened supply pressure, resulting in a steep decline of $2,227. During Sunday’s trading, the price dipped below $60,000, and a Doji pattern, indicating investor indecision, emerged during Asian market hours.</p>
<h2 id="why-are-bullish-investors-struggling">Why Are Bullish Investors Struggling?</h2>
<p style="text-align: justify">The past 24 hours have been particularly harsh for bullish investors, with liquidations soaring to $156.48 million. Long positions were hit hardest, accounting for $123.74 million of liquidations, compared to $32.74 million for short positions. This indicates waning bullish sentiment, with a liquidation ratio of approximately 1:3 favoring bearish traders.</p>
<h2 id="key-insights-for-investors">Key Insights for Investors</h2>
<ul>
 <li>Bitcoin’s price faces significant resistance at the 50-day EMA.</li>
 <li>Weekend trading saw a steep price decline and increased supply pressure.</li>
 <li>Liquidations heavily impacted long positions, showing weak bullish sentiment.</li>
 <li>Derivatives market volume rose by 95%, but Open Interest fell by 2.74%.</li>
 <li>Caution advised as technical indicators paint a mixed picture.</li>
</ul>
<p style="text-align: justify">Technical indicators currently present a mixed scenario. The daily Relative Strength Index (RSI) struggled to exceed the 50 level after rebounding from the oversold zone, suggesting potential for further declines. Additionally, Bitcoin falling below the 200-day EMA raises fears of a death cross, signaling a possible long-term bearish trend.</p>
<p style="text-align: justify">Looking ahead, <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">market conditions</a> remain highly volatile, especially due to the looming U.S. Presidential elections and economic uncertainties, which could push Bitcoin’s price down to $50,000. However, $50,000 is expected to serve as a strong support level, potentially leading to a cyclical recovery. If market conditions stabilize, particularly with a potential interest rate cut before the U.S. elections, Bitcoin might recover and aim for an all-time high by the end of 2024.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-price-drops-sharply" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Drops Sharply</a></h5>

Bitcoin Price Drops Sharply

Table of Contents

BH NEWS

Other articles published on Aug 12, 2024

Cardano’s Chang Hard Fork: Enhancing Decentralization and Governance

SEC Pushes Back Against Coinbase’s Demand for Gensler Emails on Digital Assets

New ͏Meme͏ Co͏ins To Buy Now, Monday͏, Augu͏st͏ 12͏ – Shiba S͏hootout, Wrapped D͏og, Elon Trum͏p, Dogwifc͏eo͏

Upbit Schedules Critical Maintenance on August 19

Weekly Article Recap: 7/29-8/02

Daily Market Review: BTC, ETH, XRP, SUI, ADA

Join our free newsletter for daily crypto updates!