Key Points
- Bitcoin (BTC) price dips below $59K, indicating a short-term bearish sentiment across the crypto space.
- Respected trader Peter Brandt predicts a 75% decline in Bitcoin price unless it closes above $66K in the coming weeks.
Bitcoin (BTC) has seen its price drop below $59K for the first time in three weeks, suggesting a bearish sentiment in the short term for the entire crypto market. Despite this, the leading cryptocurrency has since bounced back above the critical support level of around $69K. However, a potential selloff in the New York market could spark heightened crypto capitulation over the weekend.
Bitcoin’s Bearish Trend and Potential Rebound
On the daily time frame, Bitcoin’s price closed below the 50 Moving Average (MA) for the first time since September 17. This indicates that Bitcoin is about to end another week in a macro bearish trend that began in March.
Peter Brandt, a well-regarded trader, suggests that the Bitcoin price could face a 75% drop in the near future after ending the past 30 weeks in a descending trend. Therefore, unless Bitcoin’s price closes above $66K in the next few weeks, all signs point to a probable selloff.
From a technical analysis standpoint, Brandt believes that the BTC price could retest the support level of around $48K before initiating the next bull run towards a new all-time high in the upcoming quarters. However, crypto traders should be wary of a consistent close below $48K as it could push Bitcoin further down in the subsequent weeks.
Long-Term Market Expectations and Whale Activity
In the long run, market expectations remain high for a possible bullish breakout in the coming months. Additionally, Bitcoin’s price has not surged exponentially after the approval of spot ETFs, upcoming US elections, Fed rate cuts, and looming wars in different countries.
CryptoQuant noted, “It may take several months or more than a year for liquidity to be sufficiently supplied to the market, but in the investment market, prices move first due to the expectations of market participants, so even if we make a rough estimate, we can expect a good movement in 2025.”
After Bitcoin’s price was rejected at the resistance level of around $66.4K in the past few weeks, on-chain data reveals that more whale investors have been offloading their holdings. The demand for US spot Bitcoin ETFs has significantly declined compared to the initial days after the historic approval.
On Thursday, none of the US spot BTC ETF issuers registered a net cash inflow. Led by BlackRock’s IBIT, Fidelity’s FBIT, and ARK 21Shares Bitcoin ETF (ARKB), the US spot ETFs registered a net cash outflow of about $120 million on Thursday.
According to market data provided by Santiment, Bitcoin whales have sold over 30K BTCs in the past three days, worth nearly $2 billion. With the declining stablecoins supply, the overall buying pressure from whale investors has significantly reduced recently.