2 November 2024
Bitcoin Signaling Further Correction And Moving Towards $33K
The Crypto market has again witnessed the massive correction on the second consecutive day, with Bitcoin bleeding deep red. Bitcoin has dropped to 47% from its all-time high of $69,000, but one should wait to buy the dip.
However, the interest for Bitcoin futures continues to remain high. As per the historical trends, unless Bitcoin turns neutral or turns negative, it might not end the corrections.
Bitcoin’s technical chart shows a daily closing under $36,5000 levels. It was the lowest daily close since July 25, 2021. A Twitter handle, BTC Ninja, tweets that Bitcoin has given a close under 0.789 FIB. Hence, Bitcoin is to witness more correction to $33K and even lower.
In the recent correction, Bitcoin miners have accumulated heavily. As per data, miners have been hodling more than 6000 BTC in the last two weeks as BTC crashed from $45,000 to $38,000.
If Bitcoin continues its correction, we can see heavy selling and capitulation coming from Bitcoin miners.
The correction in the Crypto market has been attributed to the broader sell-off in the U.S. equity market. Will Clemente, the popular market analyst said, “This week Bitcoin’s correlation to the Nasdaq reached an all-time high. With no catalyst to cause idiosyncratic flows to BTC, for the time being, it is just following risk-off behavior from equities with a high beta.”
On contrary, the S&P 500 has broken below its 200-DMA. This can result in more liquidations in the Crypto market leading to the Ripple effect in the crypto space as well. Major altcoins have also entered a brutal correction.
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