While the bulls and bears play their age-old tango on the dance floor of the crypto market, BTC prices are nearing $26K with steep dives across the board. The market is well aware of this tumultuous rollercoaster and is seemingly bracing for more sell pressure. What has the crypto market alarmed is the sell-off pressure on Bitcoin that might just double before we witness any trend reversals.
A look at the present market situation reveals BTC securing its position around the two-month lows, a consequence of extreme liquidations. If the data from different market analysis pools are anything to go by, the BTC price action is seemingly moving sideways post an 8% loss single day candle. This price weakness ballooned into a cascade of liquidations across several derivatives markets, significantly larger than the relatively calm spot selling.
The reactions to these market conditions and speculations on its future implications are as different as night and day. For instance, renowned trader and analyst Rekt Capital paints a bleak picture. He articulates a double top formation for the BTC/USD in 2023, followed by a total lack of support from trend lines and moving averages during the breakdown, suggesting that the sell-off volume may increase.
On the other hand, traders like CryptoCon perceive the silver lining amidst all this. They contend that the two critical steps for a successful BTC price recovery during bull market retracements have been completed. According to them, the weekly Bitcoin relative strength index (RSI) values bounced at the 0.382 Fibonacci retracement level.
Cryptocurrency markets have often been likened to a high-stakes poker table, with big wins and losses. However, this sudden market volatility has individuals keenly anticipating Federal Reserve Chairman, Jerome Powell’s speech next week, which is now flagged as a potential source of volatility.
One fact remains clear amongst all these shreds of market analysis. We’re in a high risk, high reward scene here, which isn’t for the faint-hearted. With investment chips placed on the table, will the Federal Reserve Chairman’s address turn the tables for the cryptophiles? Only time can decrypt the answer. On one hand, we’re possibly in a crypto downward spiral with double sell-off pressure. On the other, some important steps for price recovery aligning with past successful rebounds have been fulfilled. The crypto enthusiasts, investors, or anyone with skin in the game have their nerves racked, waiting for the potential volatility to unfurl at the Fed’s address.
Source: Cointelegraph
