Bitcoin fell to a multi-month low of $49,105 on August 5 as the cryptocurrency sell-off continued.
At its lowest point on Monday, August 5, Bitcoin (BTC) was down more than 33% from its high this year. Despite bouncing from below $50,000 to test the $55,000 level, it is still in a deep bear market.
The prediction market is divided on what to expect later this year. According to Like thisa fast-growing forecasting platform backed by Charles Schwab, Sequoia, and Henry Kravis, 76% of survey respondents expect Bitcoin to end the year below $50,000.
54% of participants expect the coin to fall below $40,000, while 20% expect it to fall below $30,000.
Meanwhile, according to Bull Market, fewer traders expect Bitcoin to hit $100,000 this year. In March, 64% of survey respondents expected the currency to jump to that level. On Monday, the figure was below $100,000. Projection to 22%.
Bitcoin and other cryptocurrencies have fallen in value as the industry faces major headwinds. The latest data shows that Bitcoin ETFs have lost more than $65.4 million in assets.
Bitcoin futures are open slid Bitcoin’s value has surged to more than $6.2 billion from its all-time high of more than $8.8 billion last month. Additional data revealed that Bitcoin suffered $444 million in liquidations on Monday, while the value of the entire industry exceeded $1.14 billion.
On the plus side, major investment firms like BlackRock, Fidelity, and MicroStrategy are not selling their cryptocurrencies. MicroStrategy is even raising money. To buy more coins.
As we saw in March 2020, the Fed may start cutting interest rates even before the September meeting. Inflation has continued to decline while the unemployment rate has risen to 4.3%.
Bitcoin price technical data sends mixed signals
On the daily chart, we see that Bitcoin peaked at $73,955 and then moved down to $49,104 on August 5. Its low was an important level because it coincided with the high on January 11. Bitcoin also fell below its 200-day moving average, which means that bears are in control.
More importantly, Bitcoin has been forming a series of lower highs ($73,900, $72,000, and $70,000). It has also formed lower lows at $60,730, $56,900, and $50,775. In most cases, this price action leads to further downside movement.
On the positive side, Bitcoin has formed a widening falling wedge pattern, a common bullish sign. In this case, further upside will be confirmed if it rises above the 200-day moving average and rises above the upper side of the downtrend line.
Conversely, a break below Monday’s low would invalidate the wedge pattern and signal further downside as sellers target the 50% retracement level at $44,840.