Last week, Bitcoin (BTC) closed on a bearish note after falling below the key support level of $56,500 to $61,466. Despite forming a possible bullish pattern, rising panic has increased market fear.
On Monday morning, Bitcoin was trading around $55,422, and the fear and greed index dropped to 28, indicating growing fear. For the first time since last October, Bitcoin has consistently closed below the 200-day Moving Average (MA) over the past five days.
Bitcoin Faces Bearish Sentiment Amid Selling Pressure
Bitcoin has been under bearish pressure in recent weeks, driven by increased selling from whales. The German government has also been actively selling its Bitcoin holdings, amounting to over $85 million on Sunday alone, despite earlier reports of a potential buyback.
In the US, spot Bitcoin ETFs have seen subdued demand as BTC miners ramp up selling to cover operational expenses.
Looking ahead, the cryptocurrency industry is eagerly awaiting economic guidance from the US Federal Reserve later this week. Speculation around a potential US interest rate cut later this year, influenced by the upcoming general election, could potentially bolster a bullish sentiment in the crypto market.
Additionally, major stock indexes have recently maintained a bullish outlook, adding to market optimism.
Bitcoin’s Bullish Flag and Future Dominance Predictions
Bitcoin has been forming a weekly bullish flag over the past four months, suggesting the potential for a new all-time high later this year. According to popular crypto analyst Benjamin Cowen, reclaiming the 200-day Simple Moving Average (SMA) as a support level is crucial for Bitcoin’s chances of a bullish recovery in the fourth quarter.
Source: X
Cowen also predicts that Bitcoin’s dominance will continue to rise towards 60 percent in the coming months. He anticipates a reversal next year, which could set the stage for the much-anticipated altseason.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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