The top cryptocurrency turned bearish midway through the week, despite the Federal Reserve's meeting minutes hinting at a potential rate cut on the horizon.
The Fed emphasized that unemployment remains manageable and inflation is gradually easing.
In the wider crypto market, total market value dropped by 3.2% in the last 24 hours, settling at approximately $2.22 trillion. This decline triggered the liquidation of over $161 million in leveraged positions, with long traders bearing the brunt.
On-chain data reveals that whales are selling off assets, adding to market concerns. U.S. Bitcoin ETFs experienced a net outflow of $30 million on Wednesday, while BlackRock’s IBIT registered an inflow of $13.88 million.
In the last 24 hours, over 3,200 BTC were moved to exchanges, signaling more potential selling pressure.
After failing to surpass the $65,600 resistance level in recent weeks, Bitcoin has entered a descending parallel channel that began in March. Analyst Michael van de Poppe believes Bitcoin could fall below $60,000 and test support near $57,000.
A consistent close below this level could lead to further declines, with the next key support around $52,000. However, a breakout above $66,000 could signal a new rally, with $72,000 as the next potential target.
#Bitcoin continuing downwards fall, which means that we're likely having lower tests.
I expected it to hold here, but as negative FUD kicks in on corrections, likely we'll see sub $59.5K and reverse from there.
Still slow waters. pic.twitter.com/wiYYHJFCvb
— Michaël van de Poppe (@CryptoMichNL) October 9, 2024
Ethereum is rapidly emerging as the institutional favorite, with new ETF inflow data suggesting a seismic shift in investor focus away from Bitcoin.
Ethereum (ETH) has just triggered a golden cross against Bitcoin (BTC)—a technical pattern that has historically preceded massive altcoin rallies.
Veteran trader Peter Brandt has reignited discussion around Bitcoin’s long-term parabolic trajectory by sharing an updated version of what he now calls the “Bitcoin Banana.”
Bitcoin is once again mirroring global liquidity trends—and that could have major implications in the days ahead.