Bitcoin Crashed Below $55,000 But Traders Are Not Fearful, Why?
06 Julho 2024 - 1:00AM
NEWSBTC
As Bitcoin faces strong headwinds, breaching two critical support
levels at $60,000 and $56,500 in quick succession, it may, on the
surface, appear that fear is gripping the market. There are reasons
to be afraid, especially for coin holders leveraging BTC in
decentralized finance (DeFi) protocols, looking to take out loans
using the asset as their collateral. Fear Is Yet To Grip The
Bitcoin Market Even as prices plunge, one on-chain analyst, taking
to X, argues that the market is relatively composed and fear and
panic haven’t fully gripped it yet. Pointing to the Bitcoin Daily
Realized Profit Loss ratio, the analyst said that unless there is
an uptick in the number of addresses in red, pointing to panic
selling, the market can withstand more losses. Per the analyst’s
assessment, the absence of “panic selling” bars suggests that
investors are still processing the current events. Even as prices
crater below $56,500, the market, the analyst added, can fall to as
low as $47,000, a level that “doesn’t look as terrible as it did
three weeks ago when we were at 70,000.” Related Reading: Is This
Bad For Solana? $180 Million Transfer Raises Eyebrows Nonetheless,
amid this necessary correction, the analyst added that the shakeout
should be slower. In this way, there will be a more orderly market
correction. As of July 5, Bitcoin fell nearly 30% from all-time
highs and is under immense selling pressure. Following the drop
below $56,500 earlier today, it is evident that the coin is now
within a bear breakout formation. The sell-off forced prices from
the March to May 2024 range. This signals a new phase after
expansions in Q1 2024 when the coin roared to $73,800. Analysts
expect more losses with sellers in the driving seat and Bitcoin
within a bear breakout formation. Thus far, the immediate support
is at $50,000 and $45,000, marking January 2024 highs. Best Time To
Buy Bitcoin? Wait For This Signal While the drop is forcing
investors to seek refuge in stablecoins, another analyst thinks
this could be the best time to scoop more BTC at a discount. Taking
to X, the analyst pointed out several fundamental factors that
paint a long-term bullish picture. Related Reading: This Dormant
Bitcoin Wallet Holding $6.8 Million BTC Just Reactivated, Are They
Selling? Some of these tailwinds include the availability of spot
Bitcoin exchange-traded funds (ETFs). There’s also regulatory
clarity in the United States ahead of the highly contested
presidential election. At the same time, the analyst is convinced
the upcoming $16 billion payout by FTX trustees would be a net
positive for optimistic BTC bulls. Even so, before there is
stability and this week’s sell-off countered, there must be an
uptick in new addresses. Once this is observed, it would mean that
new investors are pouring in, creating demand for the coin. For
now, prices are plunging, and fewer addresses are being
created. Feature image from DALLE, chart from
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