Bitcoin price is currently retesting a crucial support level around $60.6k, which must hold to avoid further bleeding in the near term.
After opening the fourth quarter in a choppy mode, Bitcoin BTC $70 429 24h volatility: 1.0% Market cap: $1.41 T Vol. 24h: $55.53 B price slipped nearly 2 percent in the last 24 hits to retest the support level of about $60K. The flagship coin closed Wednesday in an indecisive manner, despite rebounding above the 50-day Moving Average (MA).
As a result, the fear of further crypto capitulation in the coming weeks significantly spiked. The Bitcoin’s fear and greed index dropped to 37 percent in the last 24 hours, denoting crowds’ fear of bearish sentiment.
From a technical standpoint, Bitcoin price is not yet out of the woods, despite the impressive performance in September. As Coinspeaker noted earlier, unless Bitcoin price consistently closes above the July peak of about $71K, the possibility of a selloff below $50K cannot be entirely ruled out.
In case the current support level fails to hold, Bitcoin price will likely find solace between $58K and $54K. If the bearish sentiment persists ahead, a drop of $50K and below will be inevitable in the coming weeks.
#Bitcoin could drop to $52,000 if the governing pattern behind the recent price action is a descending parallel channel! pic.twitter.com/CEAbdWXCrB
— Ali (@ali_charts) October 2, 2024
Bitcoin Whales Takes Refuge
According to on-chain data analysis provided by Coinglass, nearly 5k Bitcoins, worth about $300 million, were deposited in centralized crypto exchanges in the past 24 hours. Most of the Bitcoin deposits to CEXs happened on Coinbase Pro, with over 3K BTCs.
The notable Bitcoin selloff in the recent past is largely attributed to the bleeding of the US spot BTC ETFs. After bleeding over $242 million on the first day of October, the US spot Bitcoin ETFs registered over $91 million in net cash outflows on Wednesday.
Interestingly, even BlackRock’s IBIT registered a net cash outflow of about $13 million on Wednesday. Grayscale’s GBTC and ARK 21Shares Bitcoin ETF (ARKB) registered the highest cash outflow on Wednesday of about $27 million and $60 million respectively.
Notably, only Fidelity’s FBTC registered a net cash inflow of about $21 million on Wednesday.
Meanwhile, on-chain data analysis provided by Santiment shows that short-term holders of Bitcoin have sent coins worth over $3 billion to different crypto exchanges in the last two days.
What Next?
The heightened volatility in the crypto market is largely attributed to the geopolitical crisis in the Middle East and also between Europe and Russia. Ahead of the 2024 US general elections, the crypto issue is expected to play a crucial role in the next POTUS.
Furthermore, more than 50 million registered voters in the United States are invested in the crypto industry. Already, Republican presidential candidate Donald Trump has promised to establish the largest global economy, a crypto hub.
Meanwhile, the shifting economic environment, fueled by the recent rate cuts in the United States, will catalyze the next phase of the crypto bull run. Moreover, Gold price has already rallied in the price discovery zone.
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