Bitcoin Price is trading in and out of $53,000 after a A huge bearish wave hit the cryptocurrency marketstaking out more than $600 billion in one go. The turmoil in Japan has hit global stock markets hard, sending the Nikkei and major stocks down sharply. Gone are the days when cryptocurrency markets thrived while traditional markets suffered losses, and the involvement of institutions seems to have created huge repercussions.
Since the launch of the Bitcoin ETF and now the Ethereum ETF, institutions like Blackrock, Grayscale, Fidelity, etc. and a few more have been steadily accumulating BTC. As a result, a large amount of BTC and ETH have been locked under this ETF. This can be a problem as a large number of tokens held by institutions may not allow a fair game of supply and demand to develop within the markets. As a result, cryptocurrency markets, which were decoupled from the global financial markets, have started to follow the pattern.
What’s next? Will BTC price face some easing in selling pressure or will it exhaust all the gains made in 2024?
BTC price has once again dropped to one of the crucial support levels, which is the February high. These levels should be considered as one of the important zones, and a bounce here can prevent further losses. However, considering the current trading dynamics, a break below the zone seems to be imminent, which could result in a test of the lower support at $47,000 and the bulls have already defended the support at $50,419 once.
As seen in the above chart, the price has dipped below the bullish market support bands and hence the possibility of an uptrend has been deferred. Moreover, the -Di has risen sharply and is about to hit the upper threshold, which means that the bears are increasing their strength against the bulls. The bulls have defended the support at $50,419 well and have entered the market when the price touched $49,000. Hence, another bearish attempt below these levels may allow them to drag the levels towards the lower targets.
However, the cryptocurrency markets, specifically the Bitcoin price, have faced selling pressure on numerous occasions and a single step back has always resulted in a couple of steps forward. Therefore, this can be considered a good buying opportunity as the long-term BTC price rally is about to start an uptrend in no time.