The crypto markets faced yet another pullback, losing over 2.2% in market capitalization just before the end of the last trading day. More than $100 billion has been whipped out of the markets while the selling pressure remains within the range. As a result, the Bitcoin price plunged heavily below $60,000, sending shock waves across the crypto markets. Now the question arises whether the BTC price rally has halted or may undertake a fresh divergence in the coming days.
One of the major reasons for the drop could be the BTC open interest, which has been whipped out by 9.26% for nearly $3.26 billion. Besides, the US stock market closed in green while BlackRock recorded one of the largest inflows yesterday in the past several months of almost $220 million worth of BTC. On the other hand, the platform also recorded one of the largest outflows of Bitcoin from the exchanges since September 2023.
Now that the BTC balance on the exchanges is the lowest in the past several months, the current pullback is just another flush. Therefore, it is not the time to be bearish on Bitcoin, as the ongoing retracement may be over very soon.
The total market cap of the entire market capitalization is stuck within a bearish range in a descending parallel channel. The technicals are against the bulls and hence a more bearish pullback may be expected in the coming days. The RSI is heading towards lower support while the MACD is still bearish as the buying volume has not revived, although the selling pressure has faded. Therefore, there are greater possibilities of the market maintaining a bearish trend while the support at $2 trillion may be shaken for a while.
Besides, the volume has also been drained to some extent, which suggests less participation from the traders. Therefore, until and unless the global market capitalization remains stuck within the range, there may be less possibility of a bullish reversal. Hence, the upcoming weeks could be bearish on the crypto markets, mainly until the end of Q3 2024.
