Crypto market sentiment is at its lowest point in over a year, with Bitcoin still hovering around $60,000. Despite analysts searching for catalysts that could propel the price to new all-time highs, nothing seems to be working for Bitcoin at the moment.
According to Miles Deutscher, Bitcoin has fallen below this range and is now retesting the lower boundary, which was previously a support level and has now become resistance. He said that $58,400 is an important level relative to the first major all-time high in February 2021 and Bitcoin is currently trading near this level. The next 28 days are crucial as the monthly close will determine the future price direction. The analyst suggests that this downtrend can continue until a “circuit breaker” occurs.
Given the upcoming elections and other major macro events, we typically see better market conditions in Q4. We may have to endure a few more weeks of bumpy markets, but the analyst believes we could see an uptick in activity and volume as Q4 begins.
Why are retail investors leaving the market?
The analyst noted that many retail investors have left the market and it is still unclear when they will return. Bitcoin flows have been negative lately, which has contributed to the price drop. Interestingly, Bitcoin has deviated from its usual pattern of following tech stocks.
While the NASDAQ has continued to rise, Bitcoin has lost some of its gains. This may seem worrying, but when you look at the bigger picture, it is less worrying. After a strong rally following the ETF news, Bitcoin is naturally cooling down.
Miles also said that Bitcoin’s current price movements are very similar to what happened in the summer of 2021. While history doesn’t always repeat itself, these similarities could mean that Bitcoin and the crypto market could see big gains in the last quarter of 2024.
