Bitcoin has given back all the gains! Bitcoin is currently in a crash window, and a big crash may come to the market at any time. What will happen next? Bitcoin fell 8% in August
Today is Wednesday, August 28, 2024. Bitcoin fell to $58,000 a few hours ago, giving back almost all the gains. The $60,000-62,000 range failed to play an effective support role and was defeated in a short period of time.
From the 4-hour trend, since Powell’s speech on Friday, the relative strength index (RSI) has changed from an overbought state to an oversold level after this wave of declines in just 4 days.
However, every time Bitcoin is in an oversold state, there is often a rebound demand, so the next trend of Bitcoin is crucial. Whether it is the 4-hour line or the daily line, Bitcoin has completely fallen below its MA200 moving average. From the on-chain URPD indicator, the higher column on the right has become an obvious resistance level.
This wave of decline has led to the liquidation of all long positions above $58,000, and Bitcoin has once again seen negative funding rates, which means that the current market is once again dominated by airdrops. Not only Bitcoin, but other cryptocurrencies have also been heavily suppressed, and bearish sentiment is pervasive.
If the US inflation rate drops significantly and signs of recession further emerge, the rate cut may exceed current expectations. It has been about 13 months since the last rate hike in the United States. During this period, interest rates have remained high, which is the second longest period of high interest rates since the 1970s. The last similar situation occurred between July 2006 and September 2007.
From the perspective of Bitcoin miners, every time the Bitcoin block reward is halved, the miners' income will be significantly reduced, and the number of Bitcoin rewards they receive from mining will be reduced. Although the halving will cause a short-term impact on miners' income, historical data shows that miners' income tends to gradually recover after the halving.
