Is Bitcoin Cooling Off After ETF Rally? The Next 28 Days Could Determine Its Direction
The post Is Bitcoin Cooling Off After ETF Rally? The Next 28 Days Could Determine Its Direction appeared first on Coinpedia Fintech News
The crypto market sentiment is at its lowest point in over a year, with Bitcoin still hovering around the $60,000 mark. Despite analysts searching for catalysts that could drive the price to new all-time highs, nothing seems to be working for Bitcoin at the moment.
According to Miles Deutscher, Bitcoin has fallen below this range and is now retesting the lower boundary, which was previously a support level and has now become resistance. He said that $58,400, is an important level from the first major all-time high in February 2021 and Bitcoin is currently near this level. The next 28 days are crucial as the monthly close will determine future price direction. The analyst suggests that until a “circuit breaker” occurs, this downtrend may continue.
Given the upcoming election and other major macro events, Q4 usually sees better market conditions. We might need to bear a few more weeks of choppy markets, but the analyst believes we could see a rise in activity and volume as Q4 begins.
Why Are Retail Investors Leaving The Market?
The analyst observed that many retail investors have exited the market, and it still remains unclear when they will return. Bitcoin flows have been negative recently, contributing to its price drop. Interestingly, Bitcoin has moved away from its usual pattern of following tech stocks.
While the NASDAQ has continued to rise, Bitcoin has lost some of its gains. This might seem concerning, but when you look at the bigger picture, it’s less worrying. After a strong rally following the ETF news, Bitcoin is naturally cooling off.
Miles also said that Bitcoin’s current price movements are very similar to what happened in the summer of 2021. While history doesn’t always repeat, these similarities could mean that Bitcoin and the crypto market might see major gains in the last quarter of 2024.
