Bitcoin Price Dips Under $59,000 After $100 Million Liquidation: Market Forecast 

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Despite the recent influx of over $192 million into U.S. spot Bitcoin ETFs, Bitcoin (BTC), the leading cryptocurrency, failed to sustain its overnight gains and started the week on a bearish note. This decline can be attributed to the news that $155.25 million in liquidations occurred across the crypto market.

Such large-scale liquidations forcefully close leveraged positions, leading to increased selling pressure and a subsequent drop in Bitcoin’s value.

On August 12, Bitcoin briefly dropped below $59,000, reaching an intraday low of $58,269 after peaking at $61,562. The overall bearish sentiment in the crypto market, which stood at $2.05 trillion at the time of writing, resulted in a 24-hour decline of 4.07%.

Bitcoin, the largest cryptocurrency, dropped 4% in the last 24 hours, falling below $59,000 after maintaining levels above $60,000 for four days.

This decline contributed to $155.25 million in liquidations across the crypto market, with Bitcoin alone responsible for $41.31 million of that total.

Ethereum also fell, trading at $2,553, while other major cryptocurrencies, including Toncoin, Solana, and Dogecoin, saw significant losses.

Despite a 52% rise in global crypto trading volume, activity was still lower than the previous week. Analysts from Grayscale Research suggest that if the U.S. economy avoids a recession, Bitcoin might recover and approach its all-time high later this year.

Bitcoin’s recent drop below $60,000 has led to different opinions among experts. One analyst thinks Bitcoin might fall to $44,000 by early September, suggesting a possible downturn.

On the other hand, another analyst believes Bitcoin could rise to $150,000 after September, once it stabilizes.

The current dip to around $58,000 has caused widespread concern in the market, as shown by the Crypto Fear and Greed Index, which measures investor sentiment. If uncertainty continues, this fear could lead to more price drops.

Despite this, some see the situation as an opportunity to buy Bitcoin at lower prices, expecting this to lead to a strong price increase later in the year, similar to the significant rise Bitcoin saw from $17,000 to $74,000 in 2023.

On the other hand, the current selloff in the crypto market was also driven by a combination of global tensions and economic uncertainties.

However, recent geopolitical developments, such as the fire at Europe’s largest nuclear power plant and potential Iranian attacks, are amplifying market fears.

Meanwhile, allegations against SEBI Chairperson Madhabi Puri Buch and ongoing concerns about a potential U.S. recession contribute to the volatility.

While some business leaders remain optimistic about the U.S. economy, many economists are cautious, anticipating that upcoming U.S. inflation data and job numbers could further influence market sentiment.

This week’s U.S. economic data, including Producer Price Index (PPI) and Consumer Price Index (CPI) inflation reports, jobless claims, and retail sales figures, will be crucial for the Federal Reserve’s monetary policy decisions.

The CME FedWatch Tool shows mixed expectations for a rate cut in September, with a slight edge for a 25 basis point cut.

Therefore, this could significantly impact Bitcoin’s price, as mixed expectations for a September rate cut may lead to heightened volatility, influencing Bitcoin’s market sentiment.

Bitcoin Faces Resistance at $62K, Bearish Below Key Level

Bitcoin (BTC/USD) is currently trading at $58,398, reflecting a 0.58% decline. The price is under pressure as it hovers near a critical support level.

The pivot point at $59,902 serves as a key level to watch. Immediate resistance is seen at $61,869, followed by higher resistance levels at $64,643 and $67,008.

On the downside, support is located at $57,146, with additional support at $54,611 and $50,799.

Bitcoin Price Chart - Source: TradingView
Bitcoin Price Chart – Source: TradingView

The Relative Strength Index (RSI) is at 41, indicating bearish momentum. The 50-day Exponential Moving Average (EMA) stands at $59,783, which could act as a resistance level.

The downward trendline extending from the $60,100 level further reinforces this resistance. A doji candle forming below this trendline suggests hesitation in the market.

Conclusion: Bitcoin remains bearish below the $59,900 level. A break above this level could shift momentum towards a bullish trend, but failure to do so may lead to further declines.

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