BTC Price Drops to $63,621 as Fear & Greed Index Signals Market Reversal
During this European morning, selling pressure was applied to Bitcoin, causing a price decline similar to the one that occurred a few months ago before the release of important U.S. statistics. The biggest cryptocurrency by market value, according to CoinMarketCap data, dropped around 3.13% on Monday to $63,621, breaking the support of a bullish trendline that reflected the rise from the Sept. 6 low of $52,600 to the highs reached last week at $66,500. According to 10x Research, the decline appears to be a standard bull-market retracement that comes after overbought circumstances.
In last week’s report, we briefly noted that BTC appears to be overbought in the short term, as reflected by the heightened levels of the Greed & Fear index. Current short-term reversal signals have turned bearish, indicating that a pullback is likely over the next few days.
Markus Thielen, founder of 10x Research
Bitcoin’s Fate Hangs on U.S. Manufacturing Data: Will the ISM Report Spark a Rally or Decline?
According to Thielen, there have been 10% price sell-offs during the first week of the month since June, when U.S. ISM Manufacturing data was released. That tendency is supported by the most recent downturn. According to FXStreet, the September report, which is scheduled for release on Tuesday, is anticipated to demonstrate that manufacturing activity declined in the third quarter last month.
The ISM Manufacturing New Orders data shows forward-looking indicators have fallen to near-recession levels. This makes tomorrow’s data highly uncertain—if the reading falls below 48.0, it could prompt another Bitcoin drop, while a higher number might fuel a rally,
Thielen
On the other hand, the assumption that the Federal Reserve would implement another 50 basis-point interest rate decrease and China’s recent huge stimulus announcement are the main reasons for optimism for the fourth quarter.
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