- Prices are attracted to liquidity, and Bitcoin’s price movements generally govern crypto market-wide trends.
- Bitcoin’s bearish structure and momentum in the short term could result in further losses.
As a seasoned crypto investor with battle-hardened nerves and a portfolio that’s seen its fair share of market swings, I can’t help but feel a sense of déjà vu when observing this latest downturn. The crypto market has always been unpredictable, much like a rollercoaster ride without the cotton candy and souvenirs.
Over the last day, the total value of all stocks in the market dropped by 0.8%, amounting to approximately $2.06 trillion as of the current reporting time.
According to a review by AMBCrypto on CoinMarketCap, among the leading 15 cryptocurrencies, excluding stablecoins, just Binance Coin [BNB], Ripple [XRP], and TRON [TRX] have experienced an increase in value over the past seven days.
Additionally, it was revealed that Coinglass’ statistics indicated approximately $221.9 million in liquidations from the preceding day. The largest of these liquidations took place on Binance in the BTCUSDT pair, amounting to around $10.81 million.
The sharp price drop could be linked to the U.S. government moving 10,000 BTC to Coinbase Prime.
Examining liquidity pools
Bitcoin’s price tends to align with liquidity, and its fluctuations often determine broader cryptocurrency market patterns. Notably, there’s been a significant accumulation of liquidity around the $57,400 mark over the last week.
It came after BTC poked its head above $60k.
The action taken prompted buyers to increase their positions, thereby increasing liquidity below $58,000. On August 15th, Bitcoin plummeted as low as $56,000, depleting the higher levels. Moving further downward, $54,800 was the next potential bearish point.
Analyzing Bitcoin’s behavior and its fluctuating prices can provide insights into the reasons behind the cryptocurrency market’s rise or fall on a particular day.
The potential U.S. government action transferring Bitcoin to a centralized platform could have triggered or contributed to its price decrease as well.
What next for the crypto market?
In simpler terms, the trend for Bitcoin appears to be bearish, and it’s been observed that many significant alternative cryptocurrencies are following a similar short-term downward trend. Therefore, it’s probable that we will continue to experience a decline in price up until the 19th of August.
Read Bitcoin’s [BTC] Price Prediction 2024-25
A turnaround could potentially occur later on, however, this would depend on fresh updates that don’t unduly dampen the mood or outlook.
With Bitcoin exhibiting a strong downtrend and insufficient demand for purchasing, it’s plausible that both the overall crypto market and Bitcoin could experience additional declines.
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2024-08-16 16:36