Santiment, a blockchain intelligence firm, took to Twitter to report a recent wave of panic selling among traders and investors in the Bitcoin (BTC) market. The cause of this sudden dumping is attributed to BTC’s price plummeting to $27.1K, which occurred shortly after the release of lower-than-anticipated CPI data. As a result, many in the market felt uneasy and opted to sell off their holdings.
Thankfully, Santiment’s tweet provided hope by highlighting the emergence of recovery signals in the market. The firm also drew upon historical data to demonstrate that the crypto market has historically rebounded in the face of Fear, Uncertainty, and Doubt (FUD) language, such as the use of “sell” and “bearish” terminology.
As of publication, CoinMarketCap reported a slight dip of 0.24% in the overall cryptocurrency market cap, which currently stands at approximately $1.14 trillion. The market leader, BTC, also experienced a decrease of 0.52%, resulting in a price of $27,489.79. Unfortunately, this downward trend has contributed to a negative weekly performance, with a total loss of -5.75%. These figures indicate a challenging period for the crypto market, and investors should remain vigilant in their decision-making.
Over the past week, BTC has departed its consolidation channel, falling below the range of $27,727.19 to $29,972.72. Currently, BTC is trying to regain its footing above the $27,727.19 mark, as indicated by the wick beneath the current daily candle.
According to technical indicators on the daily chart of the top cryptocurrency, BTC’s price may experience a further decline in the next 24-48 hours. If this bearish trend continues, the crypto price could drop to $27,100 in the coming days. However, if BTC manages to close above the $27,727.19 threshold within the next 48 hours, it could rebound and climb back to $28,050. These insights provide valuable information for investors and traders looking to make informed decisions in the volatile world of cryptocurrency.
A promising indication of a bullish reversal in the prevailing trend would be stabilizing the daily RSI line, followed by a positive slope towards the oversold territory. Nevertheless, the release of PPI data later today may delay any prospective recovery until next week.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
