External Factors Have a High Impact on Bitcoin Now Was Crypto Better Before ETFs?
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Bitcoin price is trading in and out of $53,000 after a huge bearish wave stuck the crypto markets, whipping out over $600 billion in a go. The turmoil caused in Japan has heavily impacted the global stock markets, which has slashed the Nikkei heavily along with the major stocks. Gone are the times when crypto markets thrived as the traditional markets suffered losses and the involvement of institutions appears to have created huge repercussions.
Ever since the launch of the Bitcoin ETF and now the Ethereum ETF, institutions like Blackrock, Grayscale, Fidelity, etc. and a few more have been constantly accumulating BTC. As a result, a huge number of BTC & ETH have been locked under it. This may be a concern as a huge amount of tokens being held by institutions may not allow a fair demand and supply game to play within the markets. As a result, the crypto markets, which were decoupled from the global financial markets, have started following the pattern.
What’s next? Will the BTC price face some relaxation in selling pressure or exhaust all the gains incurred in 2024?
The BTC price has dropped back to one of the crucial support levels, which is the February high. These levels need to be considered as one of the important zones, and a rebound here may prevent further loss. However, considering the current trade dynamics, a breach below the zone appears to be imminent, which could result in a test of the lower support at $47,000 and the bulls have already defended the support at $50,419 once.
As seen in the above chart, the price has broken down below the bull market support bands and hence the possibility of a bull run has been differed. Besides, the -Di has surged heavily and is about to reach the upper threshold, which signifies the swelling strength of the bears against the bulls. The bulls have defended the support at $50,419 well and jumped in as the price hit $49,000. Therefore, another bearish attempt below these levels may certainly allow them to drag the levels towards the lower targets.
However, the crypto markets, specifically the Bitcoin price, have faced seller heat numerous times and a single step back has always resulted in a couple of steps ahead. Therefore, this can be considered a good buying opportunity, as the BTC price rally in the long term is poised to begin with a bull run in a short while from now.