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Cryptocurrencies were hit hard by a wave of risk aversion in global markets on Monday, with Bitcoin falling more than 16% at one point. The declines come as a global stock sell-off deepens, indicating concerns about the economy.
Total liquidations in the last 24 hours have risen to $1.07 billion, with longs responsible for $908.51 million of the wipeout, according to CoinGlass data.
Amid the sell-off, Michael Saylor, the chairman and cofounder of MicroStrategy, has sent out an optimistic tweet: “Believe in Bitcoin.” Saylor’s message comes at a crucial time when the market is grappling with fear and uncertainty.
Bitcoin plummeted to a low of $49,050 in early Monday trading, continuing its sell-off for the fourth straight day. The Bitcoin price crash at its nadir on Monday left the cryptocurrency at levels last seen in February.
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Amid recent developments, Saylor’s message implies the need for investors to maintain their confidence despite short-term market fluctuations.
What analysts and indicators suggest on BTC price
At the time of writing, Bitcoin traded 12.35% lower in the last 24 hours to $52,861, culminating in a 24% weekly drop, the worst since the period when the FTX exchange imploded. Bitcoin has been buffeted by a variety of factors since hitting an all-time high of $73,798 in mid-March.
As noted by Ali Martinez, a crypto analyst, historically, August and September have been the worst months for Bitcoin’s price performance, with average losses of -7.82% and -5.58%, respectively.
While Bitcoin has lost the crucial $57,000 support, CryptoQuant highlights the possibility of a drop to $40,000 as traders face their most negative unrealized profit margins since November 2022.
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On the other hand, Ali highlighted the possibility of a rebound, noting the 30-day Bitcoin MVRV Ratio has no been this low since November 2022, which marked a bottom and an excellent buying opportunity.
The TD Sequential, according to Ali, also presents a buy signal on the Bitcoin hourly chart, anticipating a rebound to $54,000 or $56,000.
