On Friday, the cryptocurrency market’s Concern and Greed Index plummeted to “excessive worry,” reflecting rising anxiousness amongst buyers because the Bitcoin value dipped to a weekly low of $53,700.
This downturn marks a continuation of a broader sell-off that has plagued the market, significantly since Bitcoin struggled to take care of momentum above the important $60,000 threshold.
Bitcoin Targets $53,000 Amid Bearish Sentiment
The steep decline in Bitcoin’s worth could be traced again to August’s vital crash, attributed to difficult macroeconomic situations that resulted in elevated liquidity exiting threat belongings, together with cryptocurrencies.
Moreover, September has traditionally been a bearish month for Bitcoin, with a median damaging return of 6%. As of now, simply six days into the month, Bitcoin has already recorded an 8% decline, a pattern that market skilled Benjamin Cowen suggests might align with typical September habits if the month concludes at this fee.
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Nevertheless, additional value retracements might happen if key assist ranges fail to carry. Analyst Justin Bennett identified that Bitcoin seems to be heading in the direction of a goal of $53,000 after a failed try and retest its all-time excessive of $69,000, which was achieved on the finish of August.
Bennett indicated that whereas the state of affairs stays fluid, there may be potential for a short aid rally within the $52,000 to $53,000 vary earlier than a deeper correction may lead the value all the way down to $48,000.
One other analyst, Michael van de Poppe, has additionally weighed in on the present market dynamics, stating that the market might have overreached by taking liquidity from above.
Van de Poppe anticipates that Bitcoin will possible check the $53,000 degree earlier than any upward motion happens. For Bitcoin to regain its footing, van de Poppe emphasizes the need of reclaiming the $56,000 mark following the latest dip.
Key Components That Might Catalyze BTC’s Value Restoration
Regardless of this bearish sentiment dominating the market, BTC investor Lark Davis stays optimistic concerning the future, suggesting that the subsequent six months may very well be pivotal for Bitcoin and the broader market, no matter latest value corrections.
One among Davis’ key factors is the upcoming fourth quarter, which has traditionally been a bullish interval for BTC, particularly in Halving years. As well as, he highlights the rising M2 cash provide, which might result in extra capital being injected into the market, additional fueling a possible rally.
Davis additionally discusses the opportunity of fee cuts by the US Federal Reserve, which analysts counsel might act as a major catalyst for BTC’s value. Ought to the Fed implement cuts of 25 foundation factors, it might create a extra favorable atmosphere for the complete crypto market.
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One other important issue Davis factors to is the upcoming US election, which is simply 60 days away. As reported by NewsBTC, a possible return of former President Donald Trump might positively impression the crypto market.
Trump has indicated plans to place BTC on the forefront of his financial agenda, together with loosening laws and fostering a extra supportive atmosphere for cryptocurrencies. This shift might instill better confidence amongst buyers and probably increase BTC costs considerably.
Nevertheless, it stays to be seen what the subsequent few days will convey for the Bitcoin value because the bearish sentiment out there is palpable, however with October holding potential good points as has traditionally occurred in previous years.
When writing, the biggest cryptocurrency available on the market was buying and selling at $54,100.
Featured picture from DALL-E, chart from TradingView.com