Bitcoin - The cryptocurrency market enters "panic selling mode"

In our last post on Bitcoin, from just a few hours ago, we hinted at the impending acceleration of selloff due to extremely bearish technical conditions. A few hours later, our prediction became fulfilled, and BTCUSDT moved significantly lower. Meanwhile, some technical indicators started to point to the oversold condition in the short term. A shortlived bounce in price might occur; however, we expect the bearish trend of the higher degree to remain intact. Indeed, we think that BTCUSDT is poised to drift lower and make a new cyclical low below 28 600 USD. We are extremely bearish on Bitcoin, and our short-term price target of 30 000 USD stays in place. Bearish fundamental and technical factors support our view. We expect the prospect of higher rates in the U.S. to put even more pressure on the cryptocurrency market, which will accompany the stock market lower. Indeed, we think the cryptocurrency market is poised for its downfall. Currently, there are over 20 000 cryptocurrencies traded around the world; meanwhile, only a few of them have found a utility besides being a speculative assets. This draws parallels to the 2000s and the dot-com bubble. Therefore, we think that the public should perhaps start to reconsider whether the last five years of cryptocurrency hysteria were not foreshadowing a burst of the most giant bubble in the history of financial markets; especially in times when the market turns into panic selling mode.

Illustration 1.01

The picture above shows the daily chart of BTCUSDT. The yellow arrow indicates the spike in volume, which hints that the cryptocurrency market is slipping into “panic selling mode.”

Technical analysis - daily time frame
RSI is oversold, which raises caution. MACD and Stochastic are bearish. DM+ and DM indicate the same condition-. Meanwhile, ADX signals that the bearish trend is extremely strong and gaining further momentum. Overall, the daily time frame is very bearish.

Illustration 1.02

The picture above shows the correlation between BTCUSD and the tech sector.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. ADX increases, which indicates that the bearish trend is gaining strength. Overall, the weekly time frame is very bearish.

Illustration 1.03

The picture above shows a dwarwing of the market cap of cryptocurrencies.

Illustration 1.04

The picture above shows BTC inflows from other cryptocurrencies, which is bearish for the overall market. Indeed, it suggests that money is getting out of risky coins.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Operación cerrada: objetivo alcanzado

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Our thoughts were updated in the following post: