bullish

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Bitcoin

Right now, the crypto market isn’t looking too hot. While U.S. equities are flying high, hitting record levels, and Asian stocks are mostly in the green, crypto is in a different place altogether.&nbsp; 
Everyone’s giddy about a possible rate cut and a soft landing for America’s economy, but crypto traders aren’t feeling it. Over the weekend, Bitcoin’s perpetual funding rates dropped to -13%, which is the lowest they’ve been since 2022.&nbsp; 
<img loading="lazy" decoding="async" class="alignnone wp-image-569532 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Bitcoin-Funding-Rates-Binance.png" alt="Bitcoin" width="1920" height="1080" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Bitcoin-Funding-Rates-Binance.png 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Bitcoin-Funding-Rates-Binance-300x169.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Bitcoin-Funding-Rates-Binance-1200x675.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Bitcoin-Funding-Rates-Binance-768x432.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Bitcoin-Funding-Rates-Binance-1536x864.png 1536w" sizes="(max-width: 1920px) 100vw, 1920px"> 
<h3 id="b-nervousness-lingers-b">Nervousness lingers</h3> 
Despite the upbeat vibe in the traditional markets, there’s still a lot of jitteriness in the air. The options market, which is always a good indicator of investor sentiment, is showing signs of stress.&nbsp; 
It’s currently pricing in a 1% swing on the S&amp;P 500 for Powell’s Jackson Hole speech coming up this Friday. This <a href="https://t.me/QCPbroadcast/1298" rel="nofollow" target="_blank">is</a> a pretty big deal because it shows that, even in this sea of optimism, there’s still a fair amount of anxiety about what could come next. 
<img loading="lazy" decoding="async" class="alignnone wp-image-570625 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-38-13.png" alt="Crypto market sentiment remains strikingly bearish" width="1920" height="785" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-38-13.png 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-38-13-300x123.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-38-13-1200x491.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-38-13-768x314.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-38-13-1536x628.png 1536w" sizes="(max-width: 1920px) 100vw, 1920px"> 
Meanwhile, in the world of crypto, the bearish sentiment stands out like a sore thumb. The market just can’t seem to shake off the gloom. 
One factor that might be contributing to this is the potential unwinding of the USD/JPY carry trade. Companies like Vanguard are ramping up their bets on more interest rate hikes from the Bank of Japan.&nbsp; 
If this plays out, it could ripple through the markets, including crypto, and we could be in for another leg down. 
<h3 id="b-market-struggles-below-key-levels-b">Market struggles below key levels</h3> 
The technical picture isn’t painting a rosier scenario either. If you look at the chart below, you’ll see that Bitcoin’s price has been stuck below the 200-day moving average, which is around the $63K mark. 
Since that rejection, Bitcoin’s price hasn’t managed to hold above the $60,000 level. Instead, it’s now inching closer to the $57,000 support level. If this support doesn’t hold, we could be looking at a sharp drop towards the $52,000 area. 
<img loading="lazy" decoding="async" class="alignnone wp-image-570626 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-40-00.png" alt="Crypto market sentiment remains strikingly bearish" width="2108" height="1502" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-40-00.png 2108w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-40-00-300x214.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-40-00-1200x855.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-40-00-768x547.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-40-00-1536x1094.png 1536w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/BTCUSD_2024-08-19_17-40-00-2048x1459.png 2048w" sizes="(max-width: 2108px) 100vw, 2108px"> 
As long as Bitcoin stays below that 200-day moving average, don’t expect any kind of sustained rally. The bulls are losing steam, and it’s showing. 
The 4-hour chart gives a clearer snapshot of just how shaky things are. After rebounding from the $50,000 zone, Bitcoin’s price has been ping-ponging between $60,000 and $57,000.&nbsp; 
<img loading="lazy" decoding="async" class="alignnone wp-image-570627 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-19-at-17.30.39.png" alt="Crypto market sentiment remains strikingly bearish" width="1295" height="291" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-19-at-17.30.39.png 1295w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-19-at-17.30.39-300x67.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-19-at-17.30.39-1200x270.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-19-at-17.30.39-768x173.png 768w" sizes="(max-width: 1295px) 100vw, 1295px"> 
What’s more, the bullish momentum that had been driving the price higher seems to be fading fast. The Relative Strength Index (RSI) has dipped below the 50% mark again, which is another red flag.&nbsp; 
If the $57,000 support zone crumbles, a drop towards the $52,000 level seems more and more likely.

Crypto market sentiment remains strikingly bearish

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