The October bullish narrative for Bitcoin is gradually losing steam as investors show fear of further capitulation amid low demand from institutional investors.
Bitcoin BTC $69 797 24h volatility: 1.3% Market cap: $1.39 T Vol. 24h: $53.28 B price slipped below $59K for the first time in three weeks, signaling short-term bearish sentiment for the entire crypto space. Although the flagship coin has since rebounded above the crucial support level of around $69K, the potential selloff in the New York market could trigger heightened crypto capitulation over the weekend.
Bitcoin Price Action Signals More Pain before Bullish Rebound
In the daily time frame, Bitcoin price closed below the 50 Moving Average (MA) for the first time since September 17. As a result, Bitcoin price is about to close another week in a macro bearish trend, which began in March.
According to a respected trader Peter Brandt, Bitcoin price faces a 75 percent decline in the near future after closing the past 30 weeks in a falling trend. Consequently, unless Bitcoin price closes the next few weeks above $66K, all indicators point to an inevitable selloff.
From a technical analysis point of view, Brandt believes that the BTC price could retest the support level of around $48K before kickstarting the next bull run toward a new all-time high in the coming quarters. However, crypto traders should pay attention to a consistent close below $48K as it could send Bitcoin further down in the subsequent weeks.
Hey Bitcoiners
Are you familiar with the concept of "market analogs?"
Here is something to think about
It has been 30 weeks since $BTC made an ATH
Whenever has not made a decisive new ATH within this time length a 75%+ decline has occurred pic.twitter.com/CUyK4C2W93— Peter Brandt (@PeterLBrandt) October 11, 2024
In the long haul, market expectations remain high for a potential bullish breakout in the coming months. Furthermore, Bitcoin price has not rallied exponentially after the approval of spot ETFs, upcoming US elections, Fed rate cuts, and looming wars in different countries.
“It may take several months or more than a year for liquidity to be sufficiently supplied to the market, but in the investment market, prices move first due to the expectations of market participants, so even if we make a rough estimate, we can expect a good movement in 2025,” CryptoQuant noted.
Crypto Whales Continues to Sell
After Bitcoin price was rejected at the resistance level of around $66.4K in the past few weeks, on-chain data shows more whale investors have been offloading their bags. As Coinspeaker previously noted, the demand for the US spot Bitcoin ETFs has significantly declined compared to the initial days after the historic approval.
On Thursday, none of the US spot BTC ETF issuers registered a net cash inflow.
Led by BlackRock’s IBIT, Fidelity’s FBIT, and ARK 21Shares Bitcoin ETF (ARKB), the US spot ETFs registered a net cash outflow of about $120 million on Thursday.
According to market data provided by Santiment, Bitcoin whales have sold over 30K BTCs in the past three days, worth nearly $2 billion. With the declining stablecoins supply, the overall buying pressure from whale investors has significantly reduced in the recent past.
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