#DiversifyYourAssets
Don’t panic Crypto currencies can go more down!
The recent downturn in cryptocurrency prices, particularly Bitcoin, can be attributed to several factors:
Key Factors Contributing to the Decline
Macroeconomic Uncertainty: The looming uncertainty from new US trade tariffs set to take effect has sparked fears of a trade war, leading to a risk-off sentiment. Investors are shifting toward safe-haven assets like gold, which has reached all-time highs.
Technical Indicators: Bitcoin's price has slipped below critical support levels, such as $82,100, and failed to break resistance at $87,500. The market value to realized value (MVRV) ratio has converged toward its long-term average, indicating the market has exited an overheated zone.
Market Sentiment: The Fear & Greed Index is at 26 (Fear), indicating a bearish sentiment. Investors are concerned about the potential for further downside.
Potential Future Price Movement
Short-term: Bitcoin's price may continue to decline, with potential support levels at $78,300 and resistance at $92,000.
Long-term: Despite the current decline, Bitcoin has a history of rebounding from significant dips. Analysts point to cycles where Bitcoin has weathered corrections, only to climb to new highs.
Expert Insights
"Correlation with macroeconomic trends has become a dominant theme for major cryptocurrencies like Bitcoin," said Paul Howard, Senior Director at Wincent.
"No definitive bottom signal has emerged yet," suggesting potential for further downside, according to Yonsei Dent from CryptoQuant
