Key Points
- Bitcoin’s short-term sentiment is not bullish, but a move towards $67k could be possible.
- Expectations for September and macro news events have impacted Bitcoin negatively.
Bitcoin’s Influence on the Crypto Market
Bitcoin [BTC] is considered the king of crypto, due to its robust nature and being the earliest in the market.
Its price movements largely sway the crypto market, often answering the question of why crypto is down on any given day.
ETF flows have been quiet for the past two days, indicating a short-term bearish sentiment, but this is unlikely to determine the long-term trend.
This is largely due to liquidity and broader market expectations.
Impact of FOMC Meeting
The US Federal Reserve’s decision to maintain its benchmark fed funds rate within the 5.25%-5.5% range did not provide any positive indications about a possible rate cut in September.
The market, as shown by data from the CME FedWatch, does not expect a mid-September rate cut.
This hawkish news may have contributed to the fall in Bitcoin’s prices.
Crypto analyst Axel Adler noted that the net taker volume has shown predominantly bearish pressure over the past two months.
The difference between taker buy and taker sell orders can provide insight into the market sentiment.
The liquidation cluster at $63.7k-$63.9k was reached, and the price has begun to move away from it.
The short-term liquidation heatmap indicates that $67k is the next target.
Overall, the market sentiment was bearish and the September expectations of a rate cut have been numbed.
This explains why the crypto market prices and sentiment were down in the past couple of days.
