In the past two days, the Bitcoin price has dipped below the $25k threshold, triggering apprehension among crypto experts who foresee a period of increased volatility. The total crypto market capitalization experienced a decline of approximately 4.2 percent within the last 24 hours, settling around $1.05 trillion during the early New York time zone. Additionally, there has been a noteworthy reduction in trading volume for most digital assets, with the overall crypto-traded volume rapidly plummeting below $50 billion.
Total market capitalization for #Crypto had to hold above the $1.05T marker (which is the 200-Week MA).
It couldn't, so price started to dwindle down and we're even rejecting that level.
Needs to reclaim asap if any upside is expected, otherwise tests at $800 and $950 billion. pic.twitter.com/C5TZs0hRXG
— Michaël van de Poppe (@CryptoMichNL) June 15, 2023
While novice traders may find the ongoing bear market disheartening and unexpected, experienced crypto veterans view it as a necessary correction, paving the way for future bullish markets. Notably, the Bitcoin halving event, anticipated within the next year, is widely regarded as a potential catalyst for significant rallies in the broader crypto landscape.
Read more: Bitcoin Halving: Why It Matters & What To Expect
Regulatory Clarity Crucial For Crypto Firms
Crypto firms are currently advocating for regulatory clarity in the United States to ensure they remain competitive in blockchain adoption. The Chair of the US Securities and Exchange Commission (SEC), Gary Gensler, asserts that most crypto assets should fall under securities laws. However, a faction of regulators led by Republican figures, including Wyoming Senator Cynthia Lummis, argue that new crypto policies should strike a balance between investor protection and embracing the nascent blockchain technology.
Market analysts predict that the crypto market will remain trapped in a downtrend over the next few months as buyers steadily accumulate assets, aiming to gain the upper hand in the future. This accumulation phase is seen as a strategic move in anticipation of a potential market reversal.
Bitcoin Technical Analysis: Bearish Rally To Prevail
Bitcoin’s price trajectory serves as a leading indicator for the broader crypto market. From a technical standpoint, Bitcoin is once again trading below the 200-week moving average (WMA), a key level for traders. This development, combined with the persistent influence of a weekly death cross, suggests that the crypto bears are likely to maintain dominance until a golden cross materializes on Bitcoin’s weekly time frame, signaling a potential shift in market sentiment.
