What happened?
Bitcoin’s price has slipped below key technical indicators causing analysts to speculate if the bull market is reaching exhaustion. The cryptocurrency slipped 2% in a day and breached critical moving averages like the 100-day and 200-day EMAs. Bitcoin’s taker buy/sell ratio, a sentiment indicator, points towards bearish market conditions as sell orders outweigh buy orders.
Who does this affect?
This development directly impacts Bitcoin investors and the larger cryptocurrency market. With Bitcoin being a leading digital asset, its course often influences other cryptocurrencies as well. As per Joao Wedson, Founder & CEO of Alphractal, the latest dip in Bitcoin shows signs of cycle exhaustion which many market participants are not paying attention to.
Why does this matter?
The developing bearish trend matters because it signifies a potential shift in Bitcoin’s market from bullish to bearish. This not only impacts Bitcoin’s value but can also sway investor sentiment across the cryptocurrency sector. In the past, such readings have preceded significant market declines. Therefore, the ongoing scenario could have a substantial market impact if it develops into a larger downtrend.