The cryptocurrency market is currently experiencing a downturn, with Bitcoin dropping below $68,000. Many altcoins are also slipping into bearish territory, causing concerns among market participants who were hoping for a strong recovery. The recent bearish weekly close has dashed hopes of a positive week ahead, leading to a 2.8% drop in the total market capitalization.
Despite a brief bullish shift in Bitcoin’s price due to increased spot BTC ETF accumulation reaching new highs, the recent halt in accumulation has caused the price to slump to a weekly low. Traders are cautious ahead of the U.S. C.P.I. print and a FED meeting, leading to a lack of risk-taking in the market.
The current trade set-up indicates that Bitcoin’s price is under bearish influence, as global market dynamics have shifted from bullish to neutral and now bearish. However, the recent meltdown may be a short-term pullback, with the possibility of a bullish reversal in the coming days.
The DMI indicator is entering a decisive phase, which could result in a breakout or breakdown. The OBV indicator is also pointing south, favoring the continuation of a bearish trend. This suggests that the BTC price may continue to descend and test lower support levels below $65,000. However, as long as the price remains above $65,000, the trend could still be influenced by bullish sentiment.
Overall, Bitcoin’s price is currently in a critical phase despite the bearish price actions that are causing some obstacles.