Originally published on: August 05, 2024
On August 5th, the cryptocurrency market experienced a significant drop as Bitcoin plummeted below $50,000, triggering panic among traders. With over $1 billion in liquidations reported on Coinglass, the question on everyone’s mind is whether this correction will deepen or if a relief rally is on the horizon.
While some analysts predict a further downturn, others remain optimistic about a potential reversal. Rekt Capital highlighted Bitcoin’s “downside deviation” and suggested that this phase could last for up to two months. However, FXPro’s senior market analyst, Alex Kuptsikevich, warned that Bitcoin could dip as low as $42,000.
Despite the recent decline, there is still hope for a bullish recovery. The S&P 500 Index and the US Dollar Index (DXY) are showing signs of potential upticks, indicating a shift in sentiment. If the markets bounce back, Bitcoin may witness a short squeeze in the coming days.
In addition to Bitcoin, other top cryptocurrencies like Ethereum (ETH), Binance Coin (BNB), Solana (SOL), XRP, Dogecoin (DOGE), TONcoin (TON), and Cardano (ADA) are also experiencing price fluctuations. These altcoins are testing crucial support and resistance levels, with traders closely watching for potential breakout opportunities.
As the market remains volatile, investors are advised to stay informed and exercise caution when making trading decisions. The crypto market’s performance is closely tied to various external factors, including global economic conditions and regulatory developments, making it essential to conduct thorough research before entering the market.
Stay tuned for more updates on the cryptocurrency market and potential investment opportunities in the coming days. Remember, every trading move involves risk, so always trade responsibly and seek professional financial advice when needed.