As Bitcoin’s price fluctuates dramatically, it has recently reached new daily lows below $94,705. This development reflects broader market volatility and ongoing concerns among investors about unexpected price drops and the rapid filling of lower wicks in the candle charts. Recently, Cowen, a prominent market analyst, warned about potential larger losses and has returned to voice caution as the market declines further. But what exactly do the indicators on the chart reveal?
The Bitcoin Downtrend
As of the latest data, Bitcoin continues to plummet, showing lower wick formations and moving towards the significant $95,000 threshold. While both daily and weekly closes show downward trends, a troubling sign is the consistent failure of the cryptocurrency to maintain its value. Some investors, especially from Asia, have been focusing their investment efforts on stocks, while American investors have persistently engaged in heavy selling.
The immediate indicators in Bitcoin’s charts, such as recent selling candles, appear to be interconnected with the “death cross”. According to Cowen, this pattern frequently correlates with identifying local bottoms in the market.
Cowen pointed out that Bitcoin has executed a death cross pattern today. Historically, these crosses have occasionally aligned with local price bottoms in the market, provided cycles were incomplete. Should this cycle remain unclosed, an upward price movement could occur in the following week.
In the absence of any significant bounce within a week, Cowen anticipates another decline possible before returning to the 200-day simple moving average (SMA), indicating a macro-level lower peak. His advice: trade based on the market you have, not the one you wish for.
XRP Coin and Market Influences
The prevailing negativity surrounding Bitcoin and altcoins has two main causes: lukewarm interest from South Korean investors and hesitation from their U.S. counterparts. While various factors underlie this shift, their reluctance is not a sudden development. Resulting weak risk appetite perpetuates whale sales and contributes to the current market situation. Analysts like Martinez have warned that nearly 200 million XRP have been sold in the past 48 hours, spotlighting market tensions.
Market declines have been notably accentuated around the opening of the U.S. market sessions. This mirrors volatility seen during early morning hours in Asian markets, where local investors’ influence becomes evident, signaling comparable support and resistance levels.
DaanCrypto commented on the current market landscape, highlighting the influential role of U.S. trading sessions and their investors as primary drivers behind both historical highs in October and the recent market downturns. Many of these movements consistently occur during U.S. and European trading hours when exchange-traded funds (ETFs) are active, indicating robust trading volumes.