Cryptocurrencies were hit hard by a wave of risk aversion in global markets on Monday, with Bitcoin falling more than 16% at one point. The declines come as a global stock sell-off deepens, indicating concerns about the economy.
Total liquidations in the last 24 hours have risen to $1.07 billion, with longs responsible for $908.51 million of the wipeout, according to CoinGlass data.
Amid the sell-off, Michael Saylor, the chairman and cofounder of MicroStrategy, has sent out an optimistic tweet: “Believe in Bitcoin.” Saylor’s message comes at a crucial time when the market is grappling with fear and uncertainty.
Believe in #Bitcoin pic.twitter.com/QSEH1s93sg
— Michael Saylor⚡️ (@saylor) August 4, 2024
Bitcoin plummeted to a low of $49,050 in early Monday trading, continuing its sell-off for the fourth straight day. The Bitcoin price crash at its nadir on Monday left the cryptocurrency at levels last seen in February.
Amid recent developments, Saylor’s message implies the need for investors to maintain their confidence despite short-term market fluctuations.
What analysts and indicators suggest on BTC price
At the time of writing, Bitcoin traded 12.35% lower in the last 24 hours to $52,861, culminating in a 24% weekly drop, the worst since the period when the FTX exchange imploded. Bitcoin has been buffeted by a variety of factors since hitting an all-time high of $73,798 in mid-March.
As noted by Ali Martinez, a crypto analyst, historically, August and September have been the worst months for Bitcoin’s price performance, with average losses of -7.82% and -5.58%, respectively.
While Bitcoin has lost the crucial $57,000 support, CryptoQuant highlights the possibility of a drop to $40,000 as traders face their most negative unrealized profit margins since November 2022.
On the other hand, Ali highlighted the possibility of a rebound, noting the 30-day Bitcoin MVRV Ratio has no been this low since November 2022, which marked a bottom and an excellent buying opportunity.
The TD Sequential, according to Ali, also presents a buy signal on the Bitcoin hourly chart, anticipating a rebound to $54,000 or $56,000.
