Currently, the Bitcoin (BTC) market is facing many signals indicating the possibility of continued price declines in the short term, based on analyses from professional investors and the volatility of related factors. Here are some key factors to pay attention to:
1. The increasing dominance of Tether (USDT):
The USDT.D index, which measures the dominance of Tether in the market, is increasing. This indicates that investors are shifting capital from BTC and other assets into USDT, which is often seen as a safe haven during unstable market periods.
2. Signs of a bull trap:
Some analysts, such as ForexX Mindset, warn of the possibility of a 'bull trap'. This means that the price of BTC may recover strongly in the short term, leading investors to be optimistic, but then it will drop deeper, causing significant losses for those who are caught up.
3. Price volatility before altcoin season:
Altcoin Sherpa notes that the market may witness unpredictable price volatility before 'altcoin season' begins. This is the time when investors shift their focus from Bitcoin to altcoins, which may weaken demand for BTC.
4. Potential support price levels:
Technical analyses indicate that BTC may test support levels in the range of $87,000 - $90,000. These are price levels at which the market may temporarily pause before a new trend.
Advice for investors
• If you are a short-term trader, be cautious of sudden bullish moves, as they may be traps.
• For long-term investors, this may be an opportunity to accumulate if you believe in the long-term potential of BTC.
• Monitor the USDT.D index and altcoin movements to predict market trends.
In summary, the downward trend of Bitcoin may not have ended, but the market can still change unexpectedly depending on investor sentiment and macroeconomic factors.