BTC price continues to stay below $26,000 at the time of writing this article, which has significantly affected altcoins. Many altcoins have reached historic lows and are failing to attract investors due to the negative sentiment around BTC. But how long will this downturn continue? What are the predictions of experts?
Kryptocurrency markets are influenced by the overall performance of risk markets, but Bitcoin has always been full of surprises. The bear markets that have been going on for almost 2 years have triggered extreme sell-offs, causing many cryptocurrencies to reach their lowest prices ever. Apart from occasional and temporary price surges, BTC has been under the control of sellers for a long time, significantly affecting risk appetite. We can clearly see this from the cumulative volume of cryptocurrencies, which has dropped to $14 billion over the weekend.
To reverse the ongoing downward trend, the data to be released this week is crucial. The state of unemployment, wages, and other indicators will help determine whether cryptocurrencies will continue to decline. Moreover, in 23 days and 6 hours, we will see the September interest rate decision at the Fed meeting. Experts are confident that there will be an increase in November, even if there is no increase in September.
On the other hand, the dollar index, which has fallen from its peak last year, has been recovering since July 13. If it surpasses the level of 105.8, it may cause investors to panic sell, assuming that the 115 region will be tested again.
Popular cryptocurrency investor Alex Kuptsikevich, in his recent note, referred to the price chart data of the company and mentioned that he expects further decline. Kuptsikevich said the following:
“The technical chart for Bitcoin continues to show a downward trend on a weekly time frame, as the price is below its 200-week moving average and outside its rising channel. In the short term, the most likely scenario seems to be a drop to the $23,900 to $24,600 range.”
Due to this technical analysis, most professional investors have been expecting a continued downward trend for weeks. Qualified investors in futures and options markets are positioning themselves for further decline.