Ash Crypto outlines Bitcoin’s decline reasons: geopolitics, Fed policy, retail greed.
Bullish breakout anticipated due to consolidation pattern and potential short squeeze.
Altcoins are set to benefit from Bitcoin’s potential rally, presenting investment opportunities.
In a recent analysis, renowned crypto trader Ash Crypto sheds light on the factors contributing to Bitcoin’s ongoing downturn, providing insights into the market sentiment and future prospects for the pioneer cryptocurrency.
Why Is #Bitcoin Dumping? 1) Iran-Israel War Situation Just a few minutes ago, the former Mossad intelligence chief said that they could strike Iran nuclear facilities. This is a massive statement and could even lead to the WWIII situation. This is causing panic in the… pic.twitter.com/S49XdwFXvo
— Ash Crypto (@Ashcryptoreal) April 17, 2024
In detail, he marks the first to be caused by geopolitical tensions escalating. Specifically, Ash Crypto points to escalating tensions between Iran and Israel as a significant driver of market panic. Recent statements from a former Mossad intelligence chief hinting at potential strikes on Iran’s nuclear facilities have rattled investors, sparking fears of broader conflict and a possible World War III scenario. Such uncertainty has led to a sell-off in Bitcoin and other cryptocurrencies.
Secondly, he highlights the Federal Reserve’s policy shift. He cites the Federal Reserve Chair Jerome Powell’s recent hawkish stance on inflation and interest rates as another factor impacting Bitcoin’s decline.
Powell’s remarks indicating a reluctance to address inflation concerns promptly have dashed hopes of an imminent rate cut, with the possibility of a rate hike gaining traction among investors. This shift in monetary policy outlook has added pressure on Bitcoin prices.
Lastly, he draws light to retail investor greed. He sees this behavior as a contributing factor to Bitcoin’s downturn. Despite recent corrections, retail traders continue to exhibit excessive greed, eagerly buying every dip with high leverage.
The persistence of positive funding rates reflects this sentiment, signaling a reluctance among investors to adopt a more cautious approach. Until a significant reset occurs, the market may continue its downward trajectory.
Despite the current downturn, Ash Crypto remains optimistic about Bitcoin’s future, anticipating a bullish breakout in the near term. Highlighting a consolidation pattern within a bullish falling wedge over the past 13 days, the trader suggests that substantial liquidity is accumulating on the upside.
Ultimately, he says this, coupled with the potential for a short squeeze, could fuel a significant price rally in Bitcoin. Moreover, the positive outlook for Bitcoin is likely to benefit altcoins as well, presenting opportunities for investors across the cryptocurrency market.
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