When the last weekly close below MA 20 took place, it was quite a dramatic rinse in May. Therefore, it is highly likely that investors will also take the current signal very seriously.
BTC, sentiment and other markets
Despite the fact that we have not yet actually broken down, I have noticed that sentiment has visibly deteriorated since the beginning of the summer holidays. On social networks, it is also known from the production of all sorts of would-be analysts who lead their sheep to short-circuit. Indeed, our sentiment is turning to a pure bear.
Respectively, even retail investors are beginning to understand that the situation is not good. Institutions have known this since the beginning of the year, so bonds, the dollar index and gold gradually went up. Inflation rose sharply, a large withdrawal from the BTC began. And even though BTC has been consolidating for several weeks, it is quite possible that large capital continues to leave the market.
Otherwise, oil spilled yesterday. The second biggest fall this year, but most importantly, it happened at the top wall of a long-term descending channel. Will oil be tested for a new low this year? Will we see a price of $ 20 per barrel again? In any case, the stock markets have a decent deal.
We’ll see what comes of it. However, it is now clear that risk-off manifests itself more and more. And if it goes on like this, one day the panic will start in the markets. Of which I’m quite worried about BTC, because when there is a massive panic in the stock market, BTC doesn’t have a good starting position.
We could fall much deeper than we originally expected. It’s nice that new opportunities are coming to the market, but too big a fall is not healthy at all. Then a lot of emotions work and a lot of strong supports fall.
So, to sum it up, market sentiment has deteriorated rapidly. It is increasingly believed that the bull run is definitely over, which is reflected in the price development of BTC.
ATTENTION: No data in the article is an investment board. Before you invest, do your own research and analysis, you always trade only at your own risk. Cryptheory team strongly recommends individual risk considerations!