2024

United

Bitcoin

when

As Bitcoin faces strong headwinds, breaching two critical support levels at $60,000 and $56,500 in quick succession, it may, on the surface, appear that fear is gripping the market. There are reasons to be afraid, especially for coin holders leveraging BTC in decentralized finance (DeFi) protocols, looking to take out loans using the asset as their collateral. 
<h2 id="fear-is-yet-to-grip-the-bitcoin-market">Fear Is Yet To Grip The Bitcoin Market</h2> 
Even as prices plunge, one on-chain analyst, taking to X, <a class="editor-rtfLink" href="https://x.com/AxelAdlerJr/status/1809095544154865751" target="_blank" rel="noopener nofollow">argues</a> that the market is relatively composed and fear and panic haven’t fully gripped it yet. Pointing to the Bitcoin Daily Realized Profit Loss ratio, the analyst said that unless there is an uptick in the number of addresses in red, pointing to panic selling, the market can withstand more losses. 
<img loading="lazy" decoding="async" class="size-full wp-image-628143" src="https://www.newsbtc.com/wp-content/uploads/2024/07/GRsyzk_XoAAY1rq.jpg?resize=1024%2C576" alt="BTC traders are not fearful | Source: @AxelAdlerJr via X" width="1024" height="576" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/GRsyzk_XoAAY1rq.jpg?resize=1024%2C576?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRsyzk_XoAAY1rq.jpg?resize=1024%2C576?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRsyzk_XoAAY1rq.jpg?resize=1024%2C576?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRsyzk_XoAAY1rq.jpg?resize=1024%2C576?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRsyzk_XoAAY1rq.jpg?resize=1024%2C576?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRsyzk_XoAAY1rq.jpg?resize=1024%2C576?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRsyzk_XoAAY1rq.jpg?resize=1024%2C576?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Per the analyst’s assessment, the absence of “panic selling” bars suggests that investors are still processing the current events. Even as prices crater below $56,500, the market, the analyst added, can fall to as low as $47,000, a level that “doesn’t look as terrible as it did three weeks ago when we were at 70,000.” 
Nonetheless, amid this necessary correction, the analyst added that the shakeout should be slower. In this way, there will be a more orderly market correction. 
As of July 5, Bitcoin fell nearly 30% from all-time highs and is under immense selling pressure. Following the drop below $56,500 earlier today, it is evident that the coin is now within a bear breakout formation. The sell-off forced prices from the March to May 2024 range. This signals a new phase after expansions in Q1 2024 when the coin roared to $73,800. <a href="https://www.tradingview.com/x/40w4yguj/" rel="nofollow"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/40w4yguj/" alt="Bitcoin price trending downward on the daily chart | Source: BTCUSDT on Binance, TradingView" width="1233" height="592"></a> 
Analysts expect more losses with sellers in the driving seat and Bitcoin within a bear breakout formation. Thus far, the immediate support is at $50,000 and $45,000, marking January 2024 highs. 
<h2 id="best-time-to-buy-bitcoin-wait-for-this-signal">Best Time To Buy Bitcoin? Wait For This Signal</h2> 
While the drop is forcing investors to seek refuge in stablecoins, another analyst thinks this could be the best time to scoop more BTC at a discount. Taking to X, the analyst <a class="editor-rtfLink" href="https://x.com/milesdeutscher/status/1809081209370096055" target="_blank" rel="noopener nofollow">pointed out</a> several fundamental factors that paint a long-term bullish picture. 
Related Reading: <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-wallet-holding-6-8-million/" target="_blank" rel="noopener ">This Dormant Bitcoin Wallet Holding $6.8 Million BTC Just Reactivated, Are They Selling?</a> 
Some of these tailwinds include the availability of spot Bitcoin exchange-traded funds (ETFs). There’s also regulatory clarity in the <a href="https://www.newsbtc.com/news/united-states-dominates-global-crypto-market-with-massive-9-3-billion-in-profits/" target="_blank" rel="noopener ">United States</a> ahead of the highly contested presidential election. At the same time, the analyst is convinced the upcoming $16 billion payout by FTX trustees would be a net positive for optimistic BTC bulls. 
<img loading="lazy" decoding="async" class="size-full wp-image-628144" src="https://www.newsbtc.com/wp-content/uploads/2024/07/GRozPsqXsAArblb.jpg?resize=1024%2C576" alt="Fewer BTC addresses being created | Source: @AxelAdlerJr via X" width="1024" height="576" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/GRozPsqXsAArblb.jpg?resize=1024%2C576?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRozPsqXsAArblb.jpg?resize=1024%2C576?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRozPsqXsAArblb.jpg?resize=1024%2C576?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRozPsqXsAArblb.jpg?resize=1024%2C576?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRozPsqXsAArblb.jpg?resize=1024%2C576?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRozPsqXsAArblb.jpg?resize=1024%2C576?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/GRozPsqXsAArblb.jpg?resize=1024%2C576?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Even so, before there is stability and this week’s sell-off countered, there must be an <a class="editor-rtfLink" href="https://x.com/AxelAdlerJr/status/1808814556585578961" target="_blank" rel="noopener nofollow">uptick</a> in new addresses. Once this is observed, it would mean that new investors are pouring in, creating demand for the coin. For now, prices are plunging, and fewer addresses are being created.&nbsp;&nbsp;

Bitcoin Crashed Below $55,000 But Traders Are Not Fearful, Why?

Table of Contents

NewsBTC

Autres articles publiés le 6 juil. 2024

ZkSync Token Rises as a Leading Gainer in Crypto Market Recovery

Spot Bitcoin ETFs see record inflows after July 4 dip

Most Rewarding Airdrops Now

Little hype for ETH? Here’s how Spot Ethereum ETFs can change that

Whale Buys $12.7 Million Worth of XRP

BlockDAG Dev Release 66 Updates on Blockchain Server Deployment; Presale Soars to $56.1M Ignited ...

Join our free newsletter for daily crypto updates!