Top Reasons Why the Bitcoin Price is Crashing Today
Elena R1 Aug 20242 min read
Bitcoin’s (BTC) price closed in July with a dragonfly Doji candlestick after the bulls were rejected at around $70k. Bitcoin’s poor performance in the past two weeks has increased the fear of a further crypto correction in August. Furthermore, Bitcoin’s fear and greed index has dropped from 74 percent, greed, to around 52 percent, neutral, in the past two days.
The altcoin sector followed Bitcoin’s decline, with the total crypto market losing over 3 percent, settling at about $2.41 trillion during the early Asian session on Thursday. This drop led to nearly $200 million being liquidated from the crypto-leveraged market, mainly affecting long traders.
Why Did Bitcoin Turn Bearish?
FOMC Data
Bitcoin led the entire cryptocurrency market into bearish territory, influenced by important economic data released on Wednesday.
Federal Reserve Chairman Jerome Powell noted that although US inflation has eased over the past year, it remains high. As a result, the Federal Reserve kept its benchmark interest rate at 5.50 percent. Powell suggested that a rate cut might be possible in September if inflation continues to drop.
Spot BTC ETFs Outflows
Additionally, Fidelity’s FBTC saw net cash outflows of about $31 million on Wednesday, followed by ARKB with roughly $4.6 million. Meanwhile, Grayscale transferred $1.8 billion from GBTC to its Mini Bitcoin Trust via Coinbase Prime.
Technical Analysis: Bitcoin’s Bearish Patterns
Bitcoin price has been forming a falling trend in the past few months after experiencing heavy resistance around $70k. The flagship coin is about to confirm a daily reversal pattern after forming a double top coupled with bearish divergence on the Relative Strength Index (RSI)
If Bitcoin’s price continues to fall in the coming weeks, it could drop to as low as $48k if the support range between $60k and $62k fails to hold.
Also Read : Top Altcoins To Stack For The Upcoming Crypto Bull Run!
Only time will tell if the bulls can regain control. Till then, brace for volatility.
