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Bitcoin Price Crash and Market Sentiment Shift
The entire crypto market crashed heavily in the last 24 hours, and that is why I always say that the market sentiments will take just a few minutes to change. Now let us talk about the market sentiments which we are witnessing at the moment. We are also going to discuss the Bitcoin price movement, and let us first talk about the Bitcoin price movement and then we will talk about how the market sentiments went from bullish to bearish in just a few minutes.
Bitcoin Price Levels
In the chart below, which is the chart on the weekly time frame for Bitcoin, you can see that I have created four important levels, and currently, we are trading below the support line shown by the yellow arrow.
I have also shared this chart a few days back, probably a week ago, where we discussed the possible price movement for Bitcoin. I clearly said that once we break this support line, which is being pointed out by the yellow arrow, then we are going to test the next support which is pointed out by the red arrow. In the chart above, we can clearly see that we are already on our way to do so. Now, so far we are still trading above that support line, and I think that we are going to test that, and for doing that, we have to come down to 111500 USDT price point for Bitcoin.
Why Bitcoin Got Rejected
As we are actually having a look at the weekly time frame, we are unable to understand why the Bitcoin price got stuck where it is right now and rejected from there. To understand that, I am going to share the 4-hour time frame chart for Bitcoin so that you can understand why we are rejecting from there.
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In the screenshot above, which is the 4-hour time frame chart for Bitcoin, I have also created a new support level at the 4-hour time frame where Bitcoin is shown to have confirmed support already. But still, considering the market sentiments, I think we can easily break this support and go down and test the 111500 USD price point.
Are We Heading Towards Bear Market
Now the question is whether we are actually heading towards the bear market or if this is just a black swan event or a fake-out in the market. To understand that, we have to look at a few things, and I have already shared them in the chart above. The trend lines shared are important trend lines, and if we are able to hold the 111500 USD price point as the support, then probably in the next few weeks and months we should head back towards the 120000 USD price point and eventually aim for the new all-time high as well.
But considering the market sentiment right now, which is extremely bearish, I think first the sentiments have to turn in our favor, and then only we can think of a scenario where the market will re-correct and make an upward movement in the coming days. The primary news that actually led to the bearish sentiment in just a few minutes of time was the announcement made by President Donald Trump.
The Announcement by President Trump
The announcement was about President Trump ordering two United States nuclear submarines to be positioned in the regions near Russia. Obviously, this is not good news as it will increase tension between Russia and America, which will be very bad not only for crypto but also for the entire financial market.
The Fed Rate Cut Factor
Another thing that was a reason for bearish sentiment was the Federal Reserve rate cut news that came. Everyone was expecting that the rate cut would happen in the month of July, but it did not happen, and that is why we have to wait until September for the next FOMC meeting to see if the rate cut will actually happen in the month of September. But until then, the sentiment is bearish considering this factor.
Negative Sentiments and Technical Factors
Interestingly, if you are someone who is able to read the charts, just go on the market and pick any famous token and see that these negative sentiments were created immediately when these tokens were at the major support of their last few weeks and months. Everyone was expecting that the rejection from this support would happen, but what happened? The sentiments changed quickly, and we broke downwards for most of the coins, and now the market is bleeding.
My suggestions
We have already shared the technical analysis and the levels we need to keep an eye on so that we can understand what will happen next. I have also shared the market sentiments and the factors that have been responsible for the bearish movement of the market. So, keep an eye on them. If any good news comes related to those factors, then the market will recover very soon. And remember, just like we go from bullish to bearish in a few moments, the same can happen for going to bullish movement once again.
To end this blog, I would like to say that you should make sure you are not panicking in this situation. Hold on to your spot wallet, stay away from leverage trading, and keep an eye on the market sentiment and the news related to the events I shared with you. Keep an eye on the levels I shared with you, and you will probably be able to understand what the future price movement will be for Bitcoin and then direct the market.
May the market gives the best for all of us in the coming days and until then just make sure to stay away from the market, spend some time with the family.
Thank You and Happy trading everyone, Oops maybe don't trade for sometime.
