Bitcoin threatens to hit one-year lows amid investor sentiment opting for other lower-risk assets than cryptocurrencies.
The cryptocurrencies They start the week on the wrong foot. Bitcoin loses more than 4% and stands at US$61,300, close to losing its support at US$61,000. While, Ethereum gives way and stands at US$3,300.
The sign is also negative in the altcoin market with losses of up to 7% led by Shiba INU, followed by Dogecoin (-5.6%) and Ethereum (-4.9%).
The fall of cryptocurrencies: what is the market sentiment?
According to CoinGlass data, they have registered settlements of more than 150 million dollars, most of them long positions that were betting on higher prices. Likewise, indicators from the blockchain analysis firm Santiment show that investor sentiment towards bitcoin is at an “extremely negative” moment (-0.73), a level at which it has remained for the last four weeks.
As if that were not enough, the exchange traded funds BTC spot ETFs continue to deflate. According to data from Farside Investors, these investment products have not been able to close a day with net capital inflows since June 12. In this period, Losses have amounted to almost $1 billion.with large ETFs like FBTC or BITB recording large outflows similar to GBTC.
For their part, QCP Capital strategists highlight two factors that may be especially weighing down Bitcoin prices in recent days.
What role does the Fed play in cryptocurrency market sentiment?
Likewise, the lack of positive catalysts is taking its toll on cryptocurrency prices. Some analysts highlight that much of the caution observed in the market has to do with the change of heart of the Federal Reserve (Fed) regarding its roadmap for the remainder of the year.
Although some data seem to show a more favorable situation that allows the central bank to ease before the end of the year and many firms and analysts believe that the Fed is being too cautiousinvestors have already made their moves and have preferred to bet on other more profitable values and safe at this time.
“From a technical point of view we continue to consume time within the great channel marked by the $60,000-72,000. Significant decrease in volatility, very low real ‘spot’ volume traded and some ETFs with negative weekly net flows,” highlighted Javier Molina, senior market analyst at eToro.
According to this expert, the loss of $64,000 leaves bitcoin in a position to fall to $60,000 and “set off all the alarms”. “. If those 60,000 are lost, the closures of long positions will be activated and we will see the annual minimums delimited by $57,000 attacked. That is the area that should not be lost under any circumstances. Above, resistance at 68,000 and from there, directly to the key area of 72,000,” he stated.
Source: Ambito
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