The cryptocurrency market and Bitcoin volatility amid macroeconomic pressure
The downward trend and recovery of Bitcoin
On June 21, according to a report from CoinDesk, the cryptocurrency market, particularly Bitcoin (BTC), experienced notable volatility. Under increasing macroeconomic pressure, the price of Bitcoin dropped from a high of $106,000 to below $103,000. However, by the end of the day, the price showed a slight recovery. This drop reflects the negative sentiment of retail investors, raising concerns about a deeper downward trend in the market. Nevertheless, technical signs suggest that BTC's price may soon turn green.
Retail investor sentiment and the potential for reversal
According to data from Santiment, the current retail investor sentiment is at its most pessimistic since Trump announced tariffs in April. However, this sudden drop also opens up opportunities for a recovery round based on historical patterns. In the past, Bitcoin has often reacted with a rapid price increase after mass sell-offs, as major investors take advantage of attractive price levels to accumulate. This indicates the possibility that the market is forming a new bottom, with potential for a long-term upward trend.
Technical factors and long-term trends in the cryptocurrency market
Cash flow and on-chain activity
In the past month, on-chain indicators have shown a steady increase in whale wallet activity, confirming that major investors are continuing to accumulate while the market still faces many short-term uncertainties. At the same time, opening derivative contracts on Binance has seen a decreasing trend, indicating that traders are reducing leverage and continuing to deleverage to mitigate risks. Meanwhile, the interest rates of the Federal Reserve remain stable, putting more pressure on the cryptocurrency market.
Assessing sentiment and investment strategy
Analysts assert that significant downturns in the cryptocurrency market do not necessarily equate to a bottom, but also open up opportunities for long-term accumulation. Major investors are maintaining their buying positions despite short-term fluctuations. The stability of interest rates and large accumulation flows from whales are key factors driving Bitcoin's potential recovery in the near future. The cryptocurrency market is currently in a correction phase, but indicators show potential for a long-term upward journey.
Source: https://tintucbitcoin.com/ti-ca-map-tien-dien-tu-tich-tru-btc/
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