Bitcoin Price Prediction: Is the BTC Rally Halted or Will It Undertake a Fresh Divergence?
- PHPzOriginal
- 2024-08-28 15:07:25572browse
The crypto markets faced yet another pullback, losing over 2.2% in market capitalization just before the end of the last trading day.
The crypto markets witnessed a significant pullback on Friday, with the total market capitalization dropping by over 2.2%. This marks a loss of more than $100 billion in market value.
The selling pressure remained evident throughout the day, leading to a sharp decline in the Bitcoin price. BTC plunged below the crucial support of $60,000, sending shock waves through the crypto markets.
The question now arises whether the BTC price rally, which began earlier this year, has come to a halt or if we may see a fresh divergence in the coming days.
One of the key factors contributing to the drop was a decrease in BTC open interest, which was wiped out by 9.26%, amounting to nearly $3.26 billion.
Despite the overall bearish sentiment, the US stock market closed in the green on Friday. Notably, BlackRock recorded one of the largest inflows yesterday in the past several months, with almost $220 million in BTC being added to their holdings.
However, the platform also saw one of the largest outflows of Bitcoin from the exchanges since September 2023.
The total BTC balance on the exchanges reached its lowest level in several months. This suggests that the current pullback may be another "flush" and not the time to be bearish on Bitcoin, as the ongoing retracement may be over very soon.
The total market cap of the entire market capitalization is trading within a bearish range in a descending parallel channel.
The technicals are against the bulls and hence a more bearish pullback may be expected in the coming days.
The RSI is heading towards lower support while the MACD is still bearish as the buying volume has not revived, although the selling pressure has faded.
Therefore, there are greater possibilities of the market maintaining a bearish trend while the support at $2 trillion may be shaken for a while.
Besides, the volume has also been drained to some extent, which suggests less participation from the traders.
Therefore, until and unless the global market capitalization remains stuck within the range, there may be less possibility of a bullish reversal.
Hence, the upcoming weeks could be bearish on the crypto markets, mainly until the end of Q3 2024.
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