Greed

2024

Bitcoin

Drops

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s market sentiment has been bearish with continuous rejections from local highs.</li> 
 <li>Unremarkable Tether exchange inflows indicate potential for a deeper price drop before market entry.</li> 
</ul> 
<p> Bitcoin’s market sentiment has been consistently bearish over the last four months, with the cryptocurrency facing continuous rejections from local highs.</p> 
<p>This selling pressure shows no signs of abating and could potentially force another significant southbound move.</p> 
<h2 id="bitcoin-s-halving-and-market-sentiment">Bitcoin’s Halving and Market Sentiment</h2> 
<p>Bitcoin’s [BTC] 2024 halving took place on 19 April. However, the anticipated bull run has not yet materialized.</p> 
<p>At the time of writing, the Crypto Fear and Greed Index showed a reading of 46, indicating a neutral sentiment.</p> 
<p>Bitcoin continues to present a bearish structure on the weekly chart, setting lower highs and lower lows since late May.</p> 
<p>This bearish view of the crypto market is further reinforced by insights into stablecoin flows.</p> 
<h2 id="deeper-price-correction-suspicions">Deeper Price Correction Suspicions</h2> 
<p>According to a CryptoQuant Insights post by popular analyst theKriptolik, there has been a significant decline in the inflows of Tether [USDT] to exchanges.</p> 
<p>A close look at the charts revealed that the stablecoin exchange inflows are currently at a six-month low.</p> 
<p>When Bitcoin and the broader crypto market experience a substantial price drop, stablecoin inflows tend to increase significantly.</p> 
<p>This suggests that buyers use the dip to add to their crypto holdings.</p> 
<p>The most recent sharp price drop occurred on 5 August when Bitcoin fell from $58.3k to $49k – a 15.9% drop. On that day, the stablecoin inflows stood at $2.9 billion.</p> 
<p>The fact that we saw unremarkable Tether exchange inflows when BTC fell below $60k can be interpreted as alarming.</p> 
<p>This suggests that smart money is waiting for a much deeper price drop before entering the market.</p> 
<h2 id="potential-for-further-price-drops">Potential for Further Price Drops</h2> 
<p>An analysis of the liquidation heatmap revealed that the next significant magnetic zones for Bitcoin would be at $48.8k and $46.6k.</p> 
<p>There also appears to be a pocket of liquidity at $53.6k. These levels would be the targets for BTC in the event of a price drop below $56k.</p> 
<p>A recent report warned that a drop below $56k could lead to a much deeper correction.</p> 
<p>The bull-bear market cycle showed bearish dominance, and the findings from the Tether exchange flows reinforced this bearish view.</p>

Tether Indications Might Pave the Way for Bitcoin to Dive Below $56K

Table of Contents

CoinEagle.com

Other articles published on Sep 2, 2024

Big Bitcoin Transfer and Surge in Large Wallets: Is the Market Poised for Change?

End of an Era: Altcoin Listed on Major Exchanges Decides to Shut Down, If Accepted, Its Token Wil...

DOGS Pulls Unexpected Stunt in 24-Hour Liquidation

Binance Battles $500 Support as Helium Eyes $10: A Turning Point for Altcoins?

Solana Skyrockets 7,600% in Fund Flows Ahead of Solana ETF Debut

Vote Trump Memecoin Will Surge 17,000% Ahead of Exchange Listing, While SHIB and BONK Plummet

Join our free newsletter for daily crypto updates!