Bitcoin’s (BTC) price dropped to $56,000 on Thursday but recovered to over $58,000 during the early European session on Friday. The cryptocurrency has been forming a bullish flag pattern, indicating a possible breakout towards $67,000 in the near future. However, the ongoing crypto market correction that started in March 2024 has heightened fears of further declines before an expected rebound to new all-time highs. Bitcoin fear and greed index remains below 30 percent, signaling extreme fear recently.
Despite significant Bitcoin adoption by institutional investors, as evidenced by the approval of spot BTC ETFs and central banks’ indirect involvement, Bitcoin has underperformed compared to the stock market’s recent rebound. Since the crypto crash on August 5, which resulted in over $1.5 billion in losses for leveraged traders, the supply of stablecoins has been increasing. Tether (USDT) leads this trend, with on-chain data indicating a notable rise in stablecoin inflows to centralized exchanges, suggesting that investors are buying the dip.
Earlier today, Circle issued $250 million on the Solana (SOL) network, bringing its total to $4.5 billion since the market correction began in April. In the past two days, Cumberland transferred more than 320 million USDT to various centralized exchanges. On-chain data shows that Cumberland has received over $1.2 billion from Tether and distributed it across different exchanges since August 5.
Read more: Circle Introduces Capital Risk Guidelines for Stablecoins
The increase in stablecoin supply is believed to reflect bullish sentiment, as institutional investors are eager to accumulate. Bitcoin’s price is at a critical juncture, potentially leading to further declines towards $50,000 or a significant rally above $67,000. Technically, Bitcoin must reclaim the key support level above $59,000 to maintain bullish momentum in the short term.
With August and September expected to remain challenging for the crypto market, a possible Bitcoin price drop to $50,000 before rebounding to a new all-time high seems likely.
Cre: coinpedia
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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