Bitcoin has had a price crash this weekend as reported by analyst Crypto Rover in a YouTube video. The leading asset traded below $60k, sparking fears of a broader market downturn.
However, the analyst suggests this extreme fear could signal a buying opportunity.
Market Sentiment Shifts
The crypto market has entered a state of extreme fear, historically seen as a potential indicator for investors. This sentiment shift comes amid cooling recession fears and changing expectations for Federal Reserve policy as noted by Crypto Rover.
Consequently, the analyst observes that prior projections of a more aggressive 50 basis point decrease have been replaced with the possibility of a 25 basis point rate cut.
With the close price of bitcoin hanging around $61,200, the price movement has established a fresh CME gap.
On the 4-hour timescale, BTC is also exhibiting indications of a bullish divergence.
Macroeconomic Factors at Play
The strength of the Japanese Yen against the US Dollar has emerged as a critical indicator for market watchers. A stronger Yen could potentially signal a bearish period for the US stock market.
Moreover, this currency movement might foreshadow a recession, further complicating the global economic sector.
Analysts expect the Federal Reserve to implement interest rate cuts within the next six weeks. Historical data suggests that markets tend to peak two to four months after the Fed initiates rate cuts.
Next Big Airdrop?
Notcoin airdrop on Telegram made millions to people. Don’t miss out on the next TG airdrop by the same team – Dogs on Ton!
Show more +Show less –
Read also: Solana Price Prediction – When Will SOL Break $200?
Consolidation Phase and Future Outlook
Bitcoin appears to be in a consolidation phase, which could persist for up to 250 days based on past patterns. The analyst anticipates an explosive breakout following this period of sideways movement.
Furthermore, the four-year cycle post-Bitcoin halving indicates that a substantial price run-up may be on the horizon.
Captain just hit his first 100x among a lot 2-5xs. Want to be a part of a profitable community?Get all our future calls by joining our FREE Telegram group.
We recommend eToro 74% of retail CFD accounts lose money. Visit eToro Now Active user community and social features like news feeds, chats for specific coins available for trading. Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs. Copy trading: allows users to copy the trades of leading traders, for free. User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate. eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
The post Bitcoin Price Plunges: Market Fear Peaks as Analyst Eyes BTC’s Potential Rebound appeared first on CaptainAltcoin.
