In an interesting curve, the Bitcoin price took a deep downturn and crashed below $64,000, hitting the lows below $63,000. This has pushed the crypto masses into deep distress, which is expected to intensify in the next few days. If the previous price actions are considered, the BTC price is performing the same thing. Therefore, there is no need to be bearish on Bitcoin at the moment, as the real bull run is yet to begin.
The BTC price usually surges high and peaks 4 to 5 weeks before the halving, after which a period of consolidation follows. This is when the altcoins wake up, which has been witnessed before 2016 and 2020 halving. However, bearish signals have been flagged for the BTC price as the OBV or On-Balance volume has broken down the ascending support. This indicates that the token may soon break the lower support and surge lower.
The OBV is a technical indicator that forecasts price movements based on volume flow. Currently, the OBV has broken down from the ascending trend line, which suggests the distribution may begin. This suggests a negative volume flow, which may be considered a warning of a downward breakout. Hence, the impact is visible as the BTC price has formed its daily lows below $63,000, somewhere around $62,800.
Secondly, the FOMC is expected to roll out fresh rates, which are expected to remain unaltered. As the US elections are due in September, the government is unlikely to go ahead with the rate cuts. On the other hand, the impact of the spot ETF appears to have dropped, as the net inflow of Grayscale has dropped drastically in the past few days while the outflows have recorded the highest numbers of over $640 million.
These may be a few reasons for the Bitcoin sell-off while the actual low for the ongoing selling pressure could be way ahead of the current levels.
