bullish

2024

Bitcoin

Impact

when

<ul> 
 <li aria-level="1">On-chain data from Santiment indicates a slight drop in Bitcoin’s MVRV ratio, suggesting bearish market sentiment.</li> 
 <li aria-level="1">Despite bearish trends, the fear and greed index at 38% suggests potential for an upcoming price rally.</li> 
</ul> 
Bitcoin recently surpassed the $66,000 mark, generating significant attention within the cryptocurrency community. However, this upward trend was short-lived as the price dipped below this threshold again. Current data indicates that Bitcoin may be on the cusp of a major price correction. 
<div class="cryptoboxes" id="mcw-12344" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-chartcoin="BTC" data-chartcurrency="USD" data-chartrate="1.000268" data-charttype="chart" data-chartview="day" data-charttheme="light" data-chartsmooth="true" data-chartareacolor="" data-chartbgcolor=""></div>
</div> 
In the last 24 hours, Bitcoin has undergone a price correction, falling under $66,000. As of this report, Bitcoin is trading at $65,504.34. ETHNews had <a href="https://www.ethnews.com/how-microstrategys-bullish-bet-on-bitcoin-positions-it-above-traditional-etfs/">previously indicated</a> the likelihood of Bitcoin experiencing a price correction.&nbsp; 
<figure id="attachment_96395" aria-describedby="caption-attachment-96395" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-96395" src="https://www.ethnews.com/wp-content/uploads/2024/09/Screenshot-2024-09-29-at-1.00.35 PM-2048x1097-1.png" alt="" width="2048" height="1097">
 <figcaption id="caption-attachment-96395" class="wp-caption-text">
 Source: Crypto Bullet
 </figcaption>
</figure> 
&nbsp;A recent tweet from Crypto Bullet <a href="https://x.com/CryptoBullet1/status/1840008772556640394">pointed</a> out a bearish divergence on Bitcoin’s 4-hour chart, a classic indicator that often precedes a price drop. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> 4h chart 
 I think we can get a correction to $59-60k and then continue to rally <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4c8.png" alt="📈" class="wp-smiley" style="height: 1em; max-height: 1em;"> 
 That dip would be a great opportunity to buy <a href="https://twitter.com/search?q=%24Alts&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$Alts</a> if you are still sidelined <a href="https://t.co/IoAdvNHrS1">pic.twitter.com/IoAdvNHrS1</a> 
 — CryptoBullet (@CryptoBullet1) <a href="https://twitter.com/CryptoBullet1/status/1840008772556640394?ref_src=twsrc%5Etfw">September 28, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
A bearish divergence occurs when price achieves new highs while an oscillator fails to reach a new peak. This divergence suggests that momentum is waning, increasing the likelihood of a price correction. In this scenario, there is a possibility that Bitcoin could retreat to $60,000 if the bearish trend continues. 
<figure id="attachment_96399" aria-describedby="caption-attachment-96399" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-96399" src="https://www.ethnews.com/wp-content/uploads/2024/09/Bitcoin-BTC-13.06.10-29-Sep-2024-santiment.png" alt="Bitcoin-BTC-13.06.10-29-Sep-2024-santiment" width="2048" height="693">
 <figcaption id="caption-attachment-96399" class="wp-caption-text">
 Source: Santiment
 </figcaption>
</figure> 
Further analysis from Santiment’s on-chain data supports the bearish outlook, as the MVRV ratio—a measure of market value to realized value—has slightly declined in recent days. This decline is typically interpreted as a bearish signal, implying a potential decrease in Bitcoin’s price. 
Additionally, the weighted sentiment around Bitcoin has also turned bearish, further suggesting a potential decline. 
ETHNews review of <a href="https://www.ethnews.com/coinbase-predicts-record-breaking-quarter-for-bitcoin-heres-why/">Coinglass’ data</a> revealed another bearish indicator, noting that Bitcoin’s long/short ratio has fallen. This change indicates an increase in short positions relative to long positions, further suggesting that market sentiment is leaning toward a bearish phase. 
<figure id="attachment_96403" aria-describedby="caption-attachment-96403" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-96403" src="https://www.ethnews.com/wp-content/uploads/2024/09/Bitcoins-long-short-ratio.png" alt="Bitcoin’s long-short ratio" width="2048" height="526">
 <figcaption id="caption-attachment-96403" class="wp-caption-text">
 Source: Coinglass
 </figcaption>
</figure> 
Despite these bearish indicators, not all signals predict a downturn. The fear and greed index currently stands at 38%, placing the market in a “fear” phase. This sentiment can often precede a market rally, as contrarian investors might see it as an opportune moment to buy. 
Moreover, on the daily chart, the 9-day moving average remains above the 21-day moving average, which could indicate underlying bullish momentum. 
<figure id="attachment_96407" aria-describedby="caption-attachment-96407" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-96407" src="https://www.ethnews.com/wp-content/uploads/2024/09/BTCUSD_2024-09-29_18-35-12.png" alt="BTCUSD_2024-09-29_18-35-12" width="1443" height="857">
 <figcaption id="caption-attachment-96407" class="wp-caption-text">
 Source: Tradingview
 </figcaption>
</figure> 
If the bullish signals hold, Bitcoin’s price might aim for the $68,000 mark before any potential fallback to $60,000. This interplay of bearish and bullish indicators illustrates the current volatility and unpredictability of the <a href="https://www.ethnews.com/impact-of-u-s-monetary-policy-on-bitcoin-insights-from-market-experts/">Bitcoin market</a>, requiring investors to stay particularly vigilant. 
The post <a href="https://www.ethnews.com/bitcoin-faces-a-potential-price-correction-analyzing-the-impact-of-recent-market-trends-and-indicators/">Bitcoin Faces a Potential Price Correction: Analyzing the Impact of Recent Market Trends and Indicators</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Bitcoin Faces a Potential Price Correction: Analyzing the Impact of Recent Market Trends and Indicators

ETHNews

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