The post Bitcoin’s bearish plunge signals a storm ahead for the altcoin market  appeared on BitcoinEthereumNews.com.

The release of dovish CPI inflation data on August 14 initially provided a bullish catalyst for Bitcoin (BTC), sparking optimism among investors.  However, this positive sentiment was quickly overturned by a couple of factors, including U.S. authorities moving 10,000 BTC, valued at nearly $600 million, into a Coinbase Prime wallet, raising concerns about potential liquidation and its impact on market prices. As Bitcoin attempts to hold above the $60,000 mark, a crypto analyst has warned that its bearish plunge could have significant implications for the broader cryptocurrency market, especially altcoins. In an August 16 post on TradingView, analyst Alan Santana provided a detailed breakdown of Bitcoin’s current bearish trends, supported by crucial momentum indicators and price movements. Technical analysis – Weakening momentum and bearish signals According to the analysis, the weekly technical chart reinforces the bearish narrative, with Bitcoin trading below key exponential moving averages (EMAs 8, 13, and 21).  Bitcoin price analysis chart. Source: TradingView/ AlanSantana The bearish cross among these averages suggests a mid-term downtrend, which has been building momentum over time. The Relative Strength Index (RSI) remains weak, and the moving average convergence divergence (MACD) indicator is trending downward with a red histogram, further signaling weakening momentum. Bitcoin’s sharp decline after briefly touching $70,000 on July 29, followed by its failure to recover convincingly, shows the lack of buying pressure in the market. This is further evidenced by its continued trading below crucial support levels, indicating that the bearish trend is deeply entrenched. On the daily chart, Bitcoin’s inability to break through the “ultra-resistance” level around $60,000, compounded by a descending MACD and a declining RSI, suggests that further downside is likely.  Bitcoin price analysis chart. Source: TradingView/ AlanSantana The bearish cross among significant moving averages (EMAs 8/13/21/34/55/89/144) and the presence of low trading volume indicate a…

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Filed under: News - @ August 16, 2024 2:24 pm