- Bitcoin may be affected by the drop in stablecoins’ market cap
RSI signalled potential reversal, despite BTC’s price declining on the charts
As a seasoned analyst with over a decade of experience navigating the rollercoaster that is the cryptocurrency market, I find myself intrigued by the current state of Bitcoin (BTC). The recent drop in stablecoins’ market capitalization suggests reduced buying power, which could potentially impact BTC demand and price.
Bitcoin’s (BTC) value has seen considerable ups and downs lately, leading to varied responses within the digital currency sphere. With this volatility in mind, it could be beneficial to explore stablecoins further. These financial instruments are essential for crypto trading as they offer liquidity and exposure to market fluctuations.
On the other hand, the significant decrease of around $780 million in the market value of stablecoins might indicate a diminishing purchasing power. Such a drop could result in decreased interest in cryptocurrencies, possibly leading to price plateaus or additional drops due to reduced demand.
The top cryptocurrency, Bitcoin, may experience significant impact, potentially extending a phase of consolidation or continuing its current decline in value.
Declining price amidst liquidations
Looking at the Bitcoin price movements in relation to USDT over a 2-hour period, it appears that the market reached its limit around the $59,500 – $60,000 zone, and in fact dipped slightly beneath $59,500.
If a recovery happens, that’s great. But if it doesn’t, Bitcoin might continue falling, possibly reaching prices as low as $55k or even below that point.
Even though a decrease in stablecoins’ market value may not have been broadly expected, it indicates that reduced interest could potentially lead to Bitcoin prices falling further prior to any recovery.
It’s quite possible that Bitcoin could fall to $55k, given that it has breached significant support thresholds, such as the 100-day moving average.
As a crypto investor, I’ve noticed that this particular indicator has served as both a support and resistance level for Bitcoin over the past few months, especially during its price range. If this level gets broken, it could be a telltale sign of increasing bearish sentiment in the market.
Moreover, Bitcoin has fallen below its 200 Exponential Moving Average (EMA), indicating a possible continuation of bearish trends. In fact, as the price fell below $59.5k, approximately $107 million in BTC long positions were terminated.
BTC’s RSI breaks above trendline
Regardless of the negative indications, there might just be a sliver of optimism that Bitcoin could bounce back before the end of the year.
At the moment, the Relative Strength Index (RSI) of Bitcoin appears to be re-evaluating the point where it initially broke free from a 200-day trendline.
Should Bitcoin sustain its position above the current trendline, it might indicate a shift in direction and bring some respite for traders and investors who are hoping for a prolonged upward trend in the value of Bitcoin.
Keeping abreast of these market fluctuations is vital, particularly since Bitcoin’s value currently hangs in the balance.
At the moment, it’s important for traders and investors to keep a close eye on Bitcoin (BTC), as both further drops and potential recoveries could happen, making this a pivotal period.
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2024-10-11 23:06