Bitcoin displayed an unexpected move in the past few days by squashing the possibilities of reaching $30,000, enrouting through $25,000 initially and later at $28,000.
However, the recent price plunge changed the entire scenario, as now the price is expected to revisit the support below $20,000 again.
The price of Bitcoin dropped from the ascending triangle and eliminated the possibilities of a bullish reversal for some time, as the market may remain consolidated for an extended period.
Will the Bitcoin price continue to consolidate towards the south, or may a bullish push relieve the token from bearish influence?
A popular analyst, DonAlt, tells his 464.8K followers that the traditional financial markets, like stocks, may have a bearish impact on the Bitcoin price. According to him, the BTC price may flip the bearish trend once the traditional markets turn bullish.
“BTC is being dragged by the traditional markets but refusing to make a new lows while the S&P [stock index] is bleeding out. The moment the traditional markets bounce, I’m expecting a massive outperforming green candle from BTC,”
The analyst further updated that, in the times when the BTC price traded flat, the traditional markets rallied big. He also notes that BTC’s less-than-stellar reaction to the stock market bounce is not “optimal.”
Meanwhile, another popular analyst, Altcoin Sherpa has also laid down the possibilties of an extended bear winter.
“BTC: some mark the top as May 2021. Others mark it at November 2021. Either way, it’s been a long time during this Bitcoin bear market.
And there’s likely to be much longer before BTC price truly ‘bottom’s out’.
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Sahana Vibhute
A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.
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Recently, increasingly bearish sentiment has engulfed the cryptocurrency markets. Bitcoin has experienced a sharp downturn in the past month, being down close to $4,000 from its June highs. This has reignited the debate about cryptocurrencies not being a safe store of value or a useful means of payment due to their volatility. However, many think that traditional markets are to blame for the market’s bearish conditions.
With the global economy continuing to weaken, traditional markets have been feeling the pinch. Equity markets have seen some of the largest sell-offs since the Global Financial Crisis, while global bond yields have declined substantially, hitting zero in some countries. While central banks have stepped in to buy bonds and provide stimulus packages, investors have moved out of stocks and bonds in favor of other assets such as Bitcoin and gold.
However, with capital fleeing traditional markets, there has been an influx of buyers into the cryptocurrency markets. This has driven up the price of major cryptocurrencies like Bitcoin, creating a bubble that was eventually destined to burst. Now, as Bitcoin’s price has plummeted, it has become increasingly clear that bears are the dominant force in the crypto markets.
It is likely that traditional markets will remain weak for some time, causing investors to continue to look for safe havens like gold and Bitcoin. As a result, it is likely that bearish conditions will continue to dominate the cryptocurrency markets for the foreseeable future.
In conclusion, it appears that Bitcoin bears are likely to dominate for the foreseeable future. With traditional markets unable to offer a safe store of value, investors are turning to assets like Bitcoin and gold, driving down the price. Ultimately, it appears that traditional markets are the ones to blame for the bearish sentiment in the crypto markets right now.
