The cryptocurrency market is facing a wave of pessimism as fears of further declines grip investors. Bitcoin (BTC) saw a 3 percent drop in the last 24 hours, falling to around $63,900 during Friday’s London session.
Interestingly, the cryptocurrency market mirrored the performance of major stock indexes in Asia and Europe, which were also in the red despite a notable rise in the global liquidity index. JPMorgan analysts, led by Nikolaos Panigirtzoglou, noted that the market is gradually turning bearish due to emerging doubts and a lack of supportive narratives.
According to on-chain data provided by Glassnode, Bitcoin has been experiencing a downturn in exchange-related on-chain activity, thus suggesting decreased investor interest. Amid the ongoing cash outflows from US-based spot Bitcoin ETFs and notable selling pressure from miners, the BTC’s funding rate has turned negative.
In the past five days alone, US-based spot Bitcoin ETFs have seen nearly half a billion dollars in outflows. Meanwhile, Bitcoin whales have offloaded over $1.2 billion through various OTC brokers.
Despite the ongoing sell-offs, Johnnie Jacks, co-founder of PaciFi and MoonGate Finance, remains optimistic. He believes the current whale and ETF sell-offs are still relatively insignificant. Jacks also highlighted the upcoming Bitcoin halving and the increasing Ethereum volume amid the forthcoming spot ETF listings as positive indicators for the market.
Bitcoin has lost several key support levels in the past two weeks, suggesting a midterm bearish outlook. Although a rebound is possible at any time, the current focus is on maintaining support above $60,000 as the weekly Relative Strength Index (RSI) approaches the 50 mark.
Should the bearish sentiment persist, many analysts predict Bitcoin could drop to around $48,000 before the bulls regain control. This potential decline is seen as a crucial testing ground for Bitcoin’s resilience in the face of ongoing market turbulence.
Also Read: Crypto Market Crash: Whales Are Targeting These Three Altcoins
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