Key Points
- Bitcoin’s price indicates short-term bearish sentiment due to whales’ sell-offs amidst geopolitical tensions.
- Around 5,000 Bitcoins were deposited into centralized crypto exchanges in the past 24 hours, mostly on Coinbase Pro.
Bitcoin’s price has seen a slip of nearly 2% in the past 24 hours, retesting the support level of approximately $60K. Despite bouncing back above the 50-day Moving Average (MA), the leading cryptocurrency ended Wednesday with uncertainty.
The apprehension of further crypto capitulation in the upcoming weeks has noticeably increased. Bitcoin’s fear and greed index fell to 37 percent in the past day, indicating a crowd fear of a bearish sentiment.
Technical Standpoint and Predictions
From a technical perspective, despite a notable performance in September, Bitcoin’s price is not yet in a safe zone. Unless Bitcoin’s price consistently closes above the July peak of about $71K, the possibility of a sell-off below $50K cannot be completely dismissed.
If the current support level fails to hold, Bitcoin’s price will likely find solace between $58K and $54K. If the bearish sentiment continues, a drop to $50K and below will be inevitable in the coming weeks.
Bitcoin Whales’ Actions
According to on-chain data analysis provided by Coinglass, nearly 5,000 Bitcoins, worth approximately $300 million, were deposited into centralized crypto exchanges in the past 24 hours. Most of these Bitcoin deposits to CEXs occurred on Coinbase Pro, with over 3,000 BTCs.
The significant Bitcoin sell-off 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.
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.
Future Outlook
The increased volatility in the crypto market is largely attributed to the geopolitical crisis in the Middle East and between Europe and Russia. As the 2024 US general elections approach, the crypto issue is expected to play a vital role in the next POTUS.
More than 50 million registered voters in the United States are invested in the crypto industry. Republican presidential candidate Donald Trump has promised to establish the largest global economy, a crypto hub.
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.
