U.Today – Cryptocurrencies were hit hard by a wave of risk aversion across global markets on Monday, with declines of more than 16% at one point. The declines come as a global stock sell-off deepens, signaling concerns about the economy.
Total liquidations in the past 24 hours have risen to $1.07 billion, with long positions responsible for $908.51 million of the loss, according to data from CoinGlass.
Amid the sell-off, Michael Saylor, chairman and co-founder of MicroStrategy, posted an optimistic tweet: “Believe in Bitcoin.” Saylor’s message comes at a crucial time when the market is facing fear and uncertainty.
Bitcoin price plunged to a low of $49,050 in early trading on Monday, continuing its sell-off trend for the fourth consecutive day. Bitcoin’s price crash to its lowest point on Monday left the cryptocurrency at levels last seen in February.
Amid recent events, Saylor's message implies the need for investors to maintain their confidence despite short-term market fluctuations.
What analysts and indicators suggest about the BTC price
At the time of writing, Bitcoin was trading down 12.35% over the past 24 hours at $52,861, capping a 24% weekly drop, the worst since the period when the FTX exchange imploded. Bitcoin has been affected by a variety of factors since hitting an all-time high of $73,798 in mid-March.
As cryptocurrency analyst Ali Martinez points out, historically, August and September have been the worst months for Bitcoin price performance, with average losses of -7.82% and -5.58%, respectively.
While Bitcoin has lost the crucial $57,000 support, CryptoQuant highlights the possibility of a drop to $40,000 as traders face their most negative unrealized profit margins since November 2022.
On the other hand, Ali highlighted the possibility of a rebound, noting that Bitcoin's 30-day MVRV ratio has not been this low since November 2022, which marked a bottom and an excellent buying opportunity.
TD Sequential, according to Ali, is also presenting a buy signal on Bitcoin’s hourly chart, anticipating a bounce towards $54,000 or $56,000.
This article was originally published on U.Today
