Bitcoin About To Lose Crucial Level — Bearish Sentiment Growing!!
Today, the U.S. was once again the nail in the coffin. The unemployment rate jumped unexpectedly, recession fears were everywhere, and the stock market plunged massively.
As a result, the crypto market suffered badly, too, as soon as the U.S. session started. That all comes at a time when Bitcoin shows weakness and adds to a strongly bearish chart (see this post).
Logically, the risk that Bitcoin revisits 52k has grown today. Similarly, the risk that many altcoins suffer badly has spiked.
However, despite the short-term bearishness, there are also positive signs when looking at the bigger picture:
* September rate cuts are now set in stone imho, and the Fed might be forced to act more aggressively until the end of the year.
* Usually, it is not the repression that pushes markets down but the fear of it. Therefore, we might see another weak month or two until the fear has been digested. That would also be perfectly in line with the rate cuts.
* The U.S. election, especially post-election time, typically had a positive impact on the crypto market. Accordingly, this could push the market by the end of 24 and early 25.
Therefore, I remain bullish on the bigger picture while expecting a choppy ride through August and early September.
Stay safe!
