As the sun crept over Europe on Monday morning, Bitcoin enthusiasts found their enthusiasm somewhat dampened. The beloved BTC, it seemed, had slunk just below the $26,000 mark, with nothing but a generally somber mood permeating the crypto trader community and a dearth of market catalysts to end the bearish trend.
A reprieve for BTC didn’t come from other sizable tokens either. The likes of XRP, ADA from Cardano, and SOL from Solana retraced by as much as 2.2%, merely extending a downtrend set in motion last week. Even ETH, or Ether, slipped 1.1% despite the efforts of trading aggregator protocol 1Inch which, in quite a move, put over $10 million worth of its treasury stablecoins into the purchase of 6,088 units of ETH late Sunday. Such a bold intervention could potentially bring some buying pressure, but alas, the market’s interest remained listless.
This crypto-sphere slump stood in stark contrast to the atmosphere in traditional markets that day. Shanghai Composition and Nikkei 225 closed successfully over 1%, Singapore strengthened by 0.73%, and European indices opened with gains up to 0.36% higher.
Sharing observations that might explain the lukewarm crypto performance, FxPro trader Alex Kuptsikevich indicated a possible future dip in his note to CoinDesk. Based on price-chart data, Kuptsikevich offered odds of a decline to the $23.9-24.6K region, outlining a gloomy forecast for Bitcoin. The price, he assessed, falls outside an ascending channel and below the 200-week average – cues that traders typically interpret as bearish.
As such, it’s clear that the bearish aura, stubbornly clinging to the crypto market since August’s commencement, has left traders reluctant to shake it off. Prep for more of the same is indicated from futures traders positioning for a pessimistic market, while the buzz from options activity suggests a further downside expectation. While time will ultimately tell where the market winds blow, it does call to question if this might be a momentary bearish blip or the onset of a new downward trend. Amid ever-evolving market dynamics, the world waits while its denizens keep their fingers clicked on the refresh button of trading platforms.