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Bitcoin (BTC) has shown a lack of momentum, worrying investors about lower support levels. Last weekend, Bitcoin started promisingly but dropped sharply with the weekly close, disappointing traders in the sideways market.
Analysts Warn About Bitcoin Price
While US stocks showed recovery signals after an early August drop, the crypto market hasn’t reacted similarly. This situation has caused concern among investors. The US Federal Reserve‘s (Fed) Jackson Hole symposium this week could be a potential market mover.
Fed Chairman Jerome Powell‘s speech at the event may provide clues about expected interest rate cuts in September. Powell’s statements could increase market volatility towards the end of the week.
Optimistic comments about Bitcoin’s market trend are hard to find before this development. Analysts suggest the BTC/USD pair could drop to 55,000 dollars, with the 50,000-dollar support level likely to be tested. Many investors plan to buy again if prices drop further. Some analysts warn of a potential “upward fake breakout” in the market.
Meanwhile, Bitcoin miners have reduced wallet outflows, indicating less selling pressure from miners. Although miners do not need to sell at current prices, large players’ movements can cause significant market fluctuations.
Bitcoin’s price is currently trading below the 200-day Simple Moving Average (SMA), creating a negative market sentiment. The recent increase in leverage ratios also supports this negative outlook. The index measuring market sentiment is approaching “extreme fear” levels. All these factors combined suggest significant volatility in the Bitcoin market soon.
Altcoins May Come to the Fore
Finally, Bitcoin’s dominance in the crypto market is around 57%, but some analysts expect this rate to drop, bringing altcoins to the forefront. Investors predict a strong rise in the altcoin market if Bitcoin’s dominance falls below 50%.
