The crypto market today seems more and more unstable, and this has been the case since the start of August. Market indicators continue to suggest a downtrend, potentially leading to a bear rally in the near future. Currently, most digital currencies show a downward trend as the market adjusts. This adjustment could prompt further declines in cryptocurrency values.
Crypto Market Trends Indicate Downward Spiral
Crypto analyst JJ C. Moreno recently highlighted the ongoing volatility in the Bitcoin market using data from CryptoQuant’s Bitcoin Bull-Bear Market Cycle Indicator. The light blue segment of the graph illustrates that the crypto market remains deep in a bear phase. This suggests that the risk of further price declines cannot be ruled out, as the market shows no signs of entering a recovery phase soon.
There is still risks of a further price correction.
Bull-Bear Market Cycle Indicator is hovering around the BEAR phase (light blue area). pic.twitter.com/qmGLJrD0nJ
— Julio Moreno (@jjcmoreno) August 15, 2024
The indicator, which tracks market sentiment over a 365-day moving average alongside a more reactive 30-day average, portrays a significant downturn in investor confidence. Bitcoin price has dipped, closely mirroring the bearish trends in the crypto market sentiment indicators, fueling a broader decline across the cryptocurrency market.
According to DeFiLlama, the total value locked (TVL) in Bitcoin has declined, now at $623.61 million. This downturn in TVL coincides with recent data showing that transaction fees have spiked to $497,392 over the last 24 hours.
These metrics point towards a cooling interest in Bitcoin investments, potentially triggered by investor hesitations amidst a volatile market environment.
Bitcoin price is currently clinging to a vital support level at $57,500 despite a prevailing bearish outlook. The cryptocurrency remains just under the significant $58,000 mark. Observations show that Bitcoin price prediction has been charting lower peaks and troughs for some time, raising alarms for some investors.
Bitcoin Struggles to Maintain Key Price Support
As of the reporting time, the BTC price hovered at $57,877.06 during the U.S. trading hours, marking a dip of 1.89%. According to CoinMarketCap data, the trading volume has surged 7.40% to $34 billion, indicating heightened crypto market activity.
The 4-hour technical indicators for BTC show a bearish trend. The Relative Strength Index (RSI) hovers below the midpoint at around 44.39. This suggests that the market is leaning more towards the sellers, with the potential for further downward pressure if the RSI stays below the 50 threshold.
Bitcoin struggles to maintain its position above the $57,900 support line. A fall below this point could lead to further declines. However, If the trend reverses, there’s potential for Bitcoin’s value to surge past the $60,000 threshold. Further momentum could push it towards $62,000 in its next upward cycle.
The post Crypto Market Could Enter Bear Rally Soon: Analyst Foresee appeared first on CoinGape.
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