As long as Bitcoin and Ethereum continue to hold support between the $21K and $1.6K levels, the market will still continue its dull movements this week. The global crypto market is still above the $1 trillion market cap, and trade volume is stable, indicating a positive mood.
Summary
- The global cryptocurrency market is still the same, with the trade volume still unchanged.
- Additional Mt. Gox creditors are about to receive their money, which might adversely impact BTC markets.
- The market sentiment is currently bearish/neutral, and Bitcoin may fall below $20,000 in the coming week.
- According to the monthly high of the fear/greed index, a new correction might be underway.
- Global cryptocurrency markets are experiencing uncertainty and panic due to the underperformance of the stock markets and the likelihood of future Fed monetary action.
Bitcoin Market Price Update
Even with dull price movement, there is still a lot of uncertainty in the markets. The Wall Street Journal reported that Mt. Gox creditors are close to receiving payment, which may cause some people to worry that customers would dump their currencies on the exchange, causing a drop in the price of Bitcoin.
Eight years later, the creditors finally received some of their money, and since then, the value of Bitcoin has climbed by more than 3,500%.
So, the probability of them selling off once they get the payment is very high. When the creditors receive their Bitcoins, a wave of selling pressure will hit the markets, perhaps leading to another downturn with a drop in the price of Bitcoin below the $20k region.
Crypto Poised for Another Drop
A report from Cointelegraph claims that Bitcoin and other digital assets could plunge another 20% to new yearly lows, signaling the emergence of the bears.
The market is now in a bearish/neutral mood, but if the total market capitalization of cryptocurrencies falls below $1 trillion, that might signal the start of a drop. However, BTC and ETH can maintain their present support levels because the market cap is still worth more than $1 trillion.
Additionally, alternative.me’s cryptocurrency fear and greed index shows that the indicator is above 25, indicating that there is a great deal of fear and panic in the markets.
The market may be getting ready for another decline this weekend because the present fear level is the highest it has been since July 18.
Final Thoughts
Investors are additionally waiting for the next move due to the underperformance of the stock market and the likelihood of future interest rate increases.
All indications point to either the markets staying in a sideways trend or seeing another correction in the following week. For those willing to open positions for the long run and lower their dollar-cost average on crypto assets, the impending downturn might drive BTC prices below $20k and Ethereum prices below $1,400.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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