Bitcoin Price Free Falls, Crypto Market Haunted By Bearish Sentiment

Bitcoin, the largest crypto asset by market cap. (Photo; Doc. Digital Market News)

JAKARTA - The price of Bitcoin (BTC) has again slumped to below $59,000 per coin (approximately IDR 885 million) for the first time in three weeks. The drop in BTC prices reflects bearish sentiment is still hitting the crypto market as a whole. Although Bitcoin had time to rise again above the crucial support level of $69,000, concerns over the potential for larger sell-offs in the New York market this weekend continued to loom over investors.

According to a CoinSpeller report, based on daily graphic analysis, Bitcoin has recorded closing trading below 50 Moving Average (MA) for the first time since September 17. This strengthens the bearish trend that has been going on since last March. With this condition, the price of Bitcoin will most likely close this week in a downward trend that has been going on for the past 30 weeks.

The decline in BTC prices was also commented on by one of the well-known crypto analysts, Peter Brandt. He warned that Bitcoin is at risk of a decline of up to 75 percent in the near future. Unless the price of Bitcoin is able to close above $66,000 in the coming weeks, technical indicators show the potential for a larger sell-off. Brandt predicts that the price of Bitcoin could retest the support level at around US$48,000 (Rp720 million) before starting a new bullish rally.

Amid the existing pressure, market participants still hold hopes for a long-term recovery. Factors such as Bitcoin's ETF approval, Federal Reserve's cut in interest rates, as well as global geopolitical tensions are expected to trigger bullish sentiment in the coming months.

A report from CryptoQuant states that although it will take months for liquidity to return to the market, expectations from investors can encourage positive price movements by 2025.

Whale Selling Bitcoin Action

Meanwhile, on-chain data shows that big investors or whales are starting to relinquish their Bitcoin holdings after prices failed to break the resistance level of US$66,400 (Rp996 million).

According to a report from Santiment, in the last three days, whales have sold more than 30,000 BTC worth nearly $2 billion. With the decline in stablecoin supply, the buying pressure from large investors has also decreased, strengthening bearish trends in the crypto market.

At the time of writing, Friday 11 October 2024, at 19:45 WIB, the price of BTC slumped slightly by 0.1% in the last 24 hours based on CoinGecko data reports.