Bitcoin (BTC) price closed on a bearish note last week, below $67k after struggling to rally beyond the recent all-time high (ATH). The flagship coin continued with the bearish sentiment on Monday, with the weekly Relative Strength Index (RSI) dropping below 62 percent for the first time since October last year.
The recent Bitcoin drop below 66k has increased the general crypto fear index, as the altcoin industry followed in tandem. Consequently, more than $92 million has been withdrawn from crypto derivatives trading in the past 24 hours, mostly involving long traders.
According to on-chain data analysis provided by CryptoQuant, the average incoming of all stablecoins has dropped by more than half to $40 billion. As a result, Axel Adler, an on-chain and macro researcher, believes the notable drop in stablecoins volume is a bearish signal for the entire crypto market.
Moreover, a drop in stablecoins volume is considered a drop in the overall buying power and also a decline in much-needed liquidity amid heightened volatility.
However, Adler highlighted that all is not lost for the bullish sentiment until the stablecoins volume slips below $30 billion.
More than two months since the fourth Bitcoin halving happened institutional adoption has escalated fueled by the approval of several spot BTC ETFs in different jurisdictions. However, the notable cash outflows from Grayscale’s GBTC year-to-date have weighed heavily on the bullish sentiment.
As a result, Bitcoin price could continue in midterm correction until the buyers establish control in the near term. Nonetheless, market experts believe Bitcoin price is well poised to rally beyond $150k in this macro bull rally.
Also Read: The Crypto Markets Continue to Drop While Institutions Accumulate ETFs: Who Is Selling BTC?
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