Key Points
- Bitcoin (BTC) has seen a decline in price, with analysts predicting further decrease if the $55,355 support level fails.
- Market conditions and negative sentiment among large holders suggest a lack of confidence and possible further decline.
Bitcoin (BTC) has recently experienced a downturn in its value, with a 3.64% decline in the last 24 hours. A further decrease is predicted by analysts if the $55,355 support level does not hold.
Despite market trends, Bitcoin had a positive September. However, the past two days have seen a sharp decrease in its value. At the time of writing, Bitcoin was trading at $61,407, which represents a 4.31% decrease on weekly charts.
Analyst’s Predictions
Before this downturn, BTC was on a positive trajectory, increasing by 5.99% on monthly charts. However, after reaching a high of $66,508, it suffered a decline, hitting a low of $60,164.
This recent fluctuation in price has resulted in widespread discussion within the crypto community. Notably, crypto analyst Man of Bitcoin has suggested a potential decline.
According to his analysis, BTC has breached a micro support level, which could lead to further decline. The market is considered bearish, leading to two potential scenarios.
In the first scenario, BTC would form an ABC correction, with Wave-A already in progress and prices decreasing. The key point is that Wave-B would fail to push the price above previous highs, meaning BTC would maintain its support above $55,355.
In the second scenario, Bitcoin would break below the $55,355 support level, entering a five-wave structure to the downside, indicating a much steeper decline.
Market Conditions and Sentiment
Fundamental indicators also suggest a potential downside. Bitcoin’s Price DAA divergence has remained negative over the past week, indicating the current price rally is not supported by fundamentals as on-chain activities have declined.
This market condition implies unsustainable price growth, signaling a lack of confidence and waning interest. Furthermore, MVRV’s long/short difference has declined over the past week, suggesting long-term holders are no longer willing to hold as much, and short-term holders might be selling to avoid losses.
Lastly, Bitcoin’s large holders’ netflow has been negative since 25th September, indicating that large holders are not opening new positions and are closing existing ones.
This reduction in funds flow from large holders signals a negative market sentiment as high outflow suggests profit-taking or avoidance of further losses. In short, Bitcoin is experiencing a negative market sentiment with bears attempting to take over the market.
If these conditions continue, BTC could decrease to $59,899. However, a reversal could see Bitcoin reclaim $62,675 levels.
