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November 23, 2024
PI Global Investments
Bitcoin

Crypto Markets Collapsing Hard, Here’s Why Traders are Turning Bearish on Bitcoin


The crypto market is plunging! Bitcoin price dropped below $68,000! The majority of the altcoins are slowly slipping into the bearish well. These current market scenarios have raised huge concerns among the market participants who were speculating about a strong recovery. However, after the recent bearish weekly close, the possibility of a positive week ahead was below par. As a result, bearish activity has exceeded expectations, causing a nearly 2.8% drop in the total market capitalization. 

The Bitcoin price experienced a nice bullish shift, with the increase in the spot BTC ETF accumulation marking new highs. After a brief halt, the accumulation restarted and reached new monthly highs. However, the ETF broke the 19-day green streak and hence the traders are in no mood to take any risk ahead of the U.S. C.P.I. print and a FED meeting. As a result, the BTC price has slumped to a weekly low. 

Is Bitcoin in danger? Will the BTC price plunge hard and test the lower support zone?

The current trade set-up suggests the price remains under bearish influence as the global market dynamics have just shifted from being bullish to neutral and now bearish. However, the recent meltdown can be considered a short-term pullback, as the price continues to flash the possibility of a bullish reversal in the next few days. 

The DMI has entered a decisive phase, which may result in either a breakout or a breakdown. Besides, the current trade set-up favours the continuation of a bearish trend as the OBV is heading towards the south. Therefore, the BTC price is expected to continue with the descending trend and reach lower support below $65,000. However, until the price remains above $65,000, the trend may remain under bullish influence, keeping the hopes of a bullish breakout alive. 

Collectively, the Bitcoin (BTC) price remains in a decisive phase regardless of the bearish price actions that are causing some hindrance.



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