Bitcoin Faces Selling Pressure as Price Drops
The price of Bitcoin (BTC), the world’s largest cryptocurrency, has dropped by 1.5% to $39,677. On-chain indicators suggest that the BTC price could potentially decline by another 10-15%.
BitMEX CEO Prepares for Market Downturn
BitMEX CEO Arthur Hayes predicts a potential 30% decline in the Bitcoin market following ETF approval. He believes that Bitcoin could find support between $30,000 and $35,000. To prepare for a possible downturn, Hayes has acquired $35,000 strike puts and liquidated his trading positions in Solana and Bonk.
BTC On-chain Data Analysis
Crypto analyst Ali Martinez has analyzed historical trends in Bitcoin price movements. He notes that Bitcoin tends to retrace to the 50% Fibonacci level after reaching the 78.6% Fibonacci level during previous bull cycles. Based on this pattern, Martinez suggests a potential drop to $32,700, aligning with the 50% Fibonacci retracement level.
Bitcoin Sentiment Cycle and Price Correction
Martinez also discusses the broader sentiment cycle for Bitcoin, which includes transitions from capitulation to hope, optimism, and belief. According to this cycle, a phase of anxiety typically follows, characterized by a price correction. Despite the current setback, Martinez remains optimistic and suggests that the observed correction could be temporary before the overall uptrend in Bitcoin’s price resumes.
Hot Take: Bitcoin Faces Selling Pressure as On-Chain Indicators Signal Potential Decline
The price of Bitcoin is under pressure as it drops by 1.5%. BitMEX CEO Arthur Hayes predicts a potential market downturn and prepares for it by acquiring put options and liquidating trading positions. On-chain data analysis by Ali Martinez suggests a potential drop to $32,700 based on historical trends. Despite the correction, Martinez remains optimistic about the long-term uptrend in Bitcoin’s price. Overall, Bitcoin faces selling pressure and potential further decline in the near term.
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