Bitcoin Faces Bearish Sentiment Amid Market Volatility; below $60k coming?

In the last 72 hours, Bitcoin recently dropped over 10% due to heavy selling and market instability. After peaking at $70,000, it is now stable around $64.3k level. Traders and analysts are watching closely for any changes in momentum and future price trends.

At the time of writing this article, the trade price of Bitcoin is $64,414 & this price is $64,243 which is more than 7% down over the last 7 days.

The cryptocurrency’s implied volatility has dropped, showing market uncertainty. Bitcoin fell below $63,000, leading to $2.5 billion in liquidated long positions. It is currently trading around $64,000, with significant volatility as 37,000 options are set to expire today, August 2. These options have a put-call ratio of 0.58 and a Maxpain point of $66,000, with a total value of $2.4 billion.

Federal Reserve & Interest Rate

Despite the recent market decline, some Bitcoin whales are buying the dip, with one purchasing 4,600 BTC. The crypto market is uncertain after the Federal Reserve decided to keep interest rates unchanged, affecting stock markets as well. This has led to speculation about big price changes following a potential Fed rate cut in September.

MicroStrategy’s Commitment to Bitcoin

Amid these bearish trends, MicroStrategy is staying committed to Bitcoin. The company recently announced plans to raise $2 billion to buy more Bitcoin. Currently, MicroStrategy holds 226,500 BTC, worth about $14.4 billion at the current market price. This move is part of their larger plan to support the Bitcoin blockchain network and become a leading Bitcoin-focused company.

Bitcoin Price Prediction 

A popular crypto analyst, Titan of Crypto, shared his prediction based on his analysis. He identified two probable scenarios: on one side, Bitcoin may experience a strong bounce, while on the other, it may dump sharply.

He noted that Bitcoin is currently testing an important support level known as the SSB line of the Ichimoku Cloud. This line is considered the strongest support in the Ichimoku Cloud technical analysis tool. The analyst believes that this is a crucial level to watch.

-If Bitcoin holds this SSB line, it could result in a strong upward movement, or a “bounce,” meaning the price might increase significantly.

-If Bitcoin fails to hold this level, the analyst predicts that the next support level would be the Kijun line at $62,200. The Kijun line is another important level in the Ichimoku Cloud, which can act as support if the price falls further.

Read also: MicroStrategy Reports Q2 Loss Amid Bitcoin Impairment but Remains Strong in Holdings