The cryptocurrency market has once again suffered a correction, with the market capitalization falling by more than 2.2% before the end of the last trading day. More than $100 billion was withdrawn from the market, while the selling pressure remained within the range. As a result, the price of Bitcoin fell sharply below $60,000, sending shockwaves to the cryptocurrency market. The question now is whether the BTC price rise has stopped or a new divergence may occur in the coming days.

One of the main reasons for the decline may be the BTC open interest, which has plummeted by 9.26% and is worth nearly $3.26 billion. In addition, the US stock market closed higher, while BlackRock recorded one of the largest BTC inflows in the past few months yesterday, with an inflow of nearly $220 million. On the other hand, the platform also recorded the largest outflow of Bitcoin from exchanges since September 2023.

Now that the BTC balance on exchanges has reached its lowest level in recent months, the current pullback is just another pullback. Therefore, it is not the time to be bearish on Bitcoin, as the current pullback may end soon.

The total market capitalization of the entire market capitalization is in the bearish range of the descending parallel channel. The technical picture is not in favor of the bulls, so more bearish pullbacks are likely in the coming days. The RSI is heading towards the lower support level while the MACD remains bearish as the buying volume is yet to resume even though the selling pressure has subsided. Hence, there are more chances that the market will sustain the bearish trend while the $2 trillion support level might falter temporarily.  

Furthermore, the trading volumes are also declining to some extent, which suggests low participation by traders. Hence, the chances of a bullish reversal are less unless the global market capitalization remains within the range. Hence, the coming weeks are likely to be bearish for the cryptocurrency market, mostly till the end of Q3 2024.