Over the past weekend, Bitcoin $108,012 experienced a significant price drop after peaking briefly at 98,200 dollars on Friday. Investors displayed caution as price fluctuations were notably marked by low liquidity and increasing macroeconomic uncertainties.
Bitcoin Price Downturn
On Saturday and Sunday, Bitcoin fell below the 96,000 dollar mark. This decline followed a robust rally supported by institutions on Friday, revealing a challenging market environment struggling to find support.
Despite Bitcoin showcasing a 4.5% weekly increase, its 30-day performance remains at 12.8%, boosted by ETF inflows and American companies accumulating BTC. However, resistance level uncertainties and declining trading volumes indicate cautious market conditions reflected in investor sentiment.
Ethereum $2,507 failed to maintain its position above 1,900 dollars, and a decrease in futures trading volume on leading exchanges highlighted the rising short-term market risks. This scenario suggests that investors are generally adopting a more cautious approach.
Tom DeMark’s Warnings
Tom DeMark, proprietor of the TD Sequential indicator, suggested that U.S. stocks might be nearing a peak, after which a broad decline could initiate. DeMark noted the index’s current signs of weakness being closely monitored.
“A peak is near. Received too much technical hits.” -DeMark.
DeMark predicted that two new closing peaks in the S&P 500 index might signal a trend reversal. His analyses emphasized that the market could be at risk depending on global trade conditions and liquidity.
In the U.S., expectations of tariff easing by Trump and potential interest rate cuts have created a positive impact on the general market atmosphere. Consequently, the correlation between Bitcoin and the S&P 500 has increased, highlighting the sensitivity of crypto-assets to classical market movements. Nonetheless, markets remain anxious as the Fed meeting approaches.
As Bitcoin aims for the 100,000 dollar target amid rising global uncertainties and economic indicators, tracking market sentiment closely becomes necessary. Investors strive to plan their moves by considering both technical signals and macroeconomic developments.