#Bitcoin (BTC) experienced a considerable selloff over the weekend, dropping its price below the $60,000 level. The asset has continued its bearish momentum into the new week and is down by just over 4% in the past 24 hours. According to one analyst, the crypto markets lack a clear anchor and are susceptible to adjustments based on the traditional markets. Bitcoin ETFs were also in the red, losing around $89 million to outflows. BTC could see a further decline this week due to technical weaknesses. However, the release of upcoming traditional market data could alleviate selling pressure.
“Crypto prices will likely be rangebound with a bias to the weak side. However, the technical damage and sentiment drag remain, with on-chain cost models and MVRV models suggesting further possible shake-out before Jackson Hole. Crypto markets lack a clear anchor and are susceptible to continued position adjustments. We continue to see muted ETF inflows for BTC and ETH over the past few sessions.”
Retail giants Alibaba and Walmart are set to release earnings on Thursday, while Taiwan and Hong Kong will publish their updated GDP numbers on Friday. As shown in the price chart below, BTC saw a huge rally on Thursday, as it rose by 12% to surge past $60,000 and settle at $61,763. However, sellers were active at these levels, defending the moving averages. As a result, BTC fell on Friday, dropping by 1.34% to $60,932. Saturday did not see much movement, with the price registering only a marginal increase. Buyers attempted a move past the moving averages on Sunday as BTC reached an intra-day high of $61,970.
However, the price turned bearish and fell considerably, eventually registering a drop of almost 4% to slip below the $60,000 level and settle at $58,775, ending the weekend on a bearish note. The current session sees BTC marginally down, trading just below the $58,500 level. If BTC continues to drop, we could see a drop to $55,000 before the price stabilizes. However, if buyers can withstand the selling pressure and prevent BTC from dropping drastically, it means buyers are purchasing the dip, boosting the likelihood of a quick recovery.
