U.Today – Peter Brandt has detected a bearish trend that we are seeing exclusively in this market. Digital gold has been slowly losing value despite being in an uptrend, but the worst thing is the magnitude of the correction we are seeing right now.
Brandt, known for his accurate predictions and deep market knowledge, noted that the current correction should be a concern for investors. The cryptocurrency has broken the 200 exponential moving average, which has historically served as a reliable support line, and has lost a substantial amount of ground. This breakout raises the possibility that a more significant correction is underway.
Recently, the price of Bitcoin fell below $58,000, triggering massive liquidations in the market. Bitcoin is currently in a downtrend and has been unable to maintain its upward momentum. It is unclear how long this uptrend will last given the stark contrast between the current market behavior and the uptrend we saw earlier in this cycle.
The cryptocurrency market has been affected by this global uncertainty, which has increased volatility and put pressure on sellers. The second major factor affecting Bitcoin and other cryptocurrencies remains the massive outflow of funds caused by selling pressure from Mt. Gox and the German government. Billions of BTC entered the market with little liquidity, leading to the price drop we are witnessing right now.
These legal hurdles are likely to remain, putting further pressure on the Bitcoin price. The third factor contributing to the decline is the lack of new institutional inflows.
Significant institutional investment fueled the previous bull run, pushing Bitcoin to all-time highs. But these investments have slowed down in the current cycle, which has worsened the correction. A key test for Bitcoin is the current correction. We could see additional declines and possibly test the lower limits of the uptrend that began in 2022 if the price fails to hold above important support levels.
This article was originally published on U.Today
