#write2earn #Bitcoin Correction: Assessing Support Levels and Market Sentiment #PriceDrop #BTC #HotTrends
Bitcoin has taken a hit, down by as much as 6% today, and the rest of the crypto market isn't faring any better. People are starting to wonder how far this correction will go and if the bull market is coming to an end.
Yesterday saw a massive sell-off of over $640 million worth of Bitcoin from the Grayscale Bitcoin ETF (GBTC), setting a record for outflows in a single day. Even with the Blackrock Bitcoin ETF (IBIT) seeing a daily inflow of $451 million, it couldn't match up. This resulted in a negative flow for Bitcoin for the first time in weeks, with a net outflow of $154 million for the day.
This downward pressure on the price has accelerated the ongoing correction, with Bitcoin now over 6% down for the day, bringing the total pullback from its recent peak to almost 15%.
As for support levels, Bitcoin is currently holding onto a support level, though it's not the strongest.
It's caught within a descending wedge pattern, which typically signals bullish momentum. If the lower trend line holds, there's potential for a bounce back up and maybe even a breakout to the upside.
Taking a broader view on the weekly timeframe, Bitcoin has dropped below support levels that were significant during the first bull market peak in 2021 and a subsequent double top. While there's some support at the current level, if it fails, we might see Bitcoin's price drop further, possibly to $60,000 or even as low as $51,900. Where the weekly candle closes next Sunday will be crucial to watch.
Amidst all this, it's important to remember the bigger picture. Fiat currency is continuously losing value as governments struggle to stabilize the financial system. This widening wealth gap leaves the less fortunate in a tougher spot while the wealthy can protect themselves with assets.
Adding to the complexity, some governments are restricting their citizens from buying Bitcoin on centralized exchanges. That's why decentralized exchanges (DEXes) are becoming increasingly vital.
