The post Here’s why Bitcoin has dropped this weekend, according to BTC analyst appeared on BitcoinEthereumNews.com.

Bitcoin (BTC) has experienced a significant drop over the weekend, with the cryptocurrency falling below $61,000. This decline has been analyzed as part of a larger consolidation phase that has persisted for the past five months, according to a TradingView post by crypto trading expert RLinda. The analyst attributes the failure to surpass the critical $70,000 resistance and the recent drop in prices to several key factors, both fundamental and technical. Fundamental factors On the fundamental side, macroeconomic indicators have played a significant role. The release of the Nonfarm Payroll (NFP) report on August 2, which showed an increase in unemployment from 4.0% to 4.3%, alongside rising inflation, has created a negative sentiment in the markets. This adverse economic data has led to a sell-off in Bitcoin as investors reacted to broader market conditions. Fears of a looming recession, long predicted by some economists, have intensified following the weak jobs report. Economist Peter Schiff has been vocal in amplifying these concerns, contributing to broader market volatility. Total Bitcoin Spot ETF Net Inflow (BTC). Source: SosoValue Moreover, according to data from SosoValue both Bitcoin and Ethereum ETFs have faced significant outflows, exacerbating the market’s troubles. Bitcoin ETFs saw $237.4 million in outflows on August 2, with a weekly total of $80.4 million. Ethereum ETFs experienced outflows totaling $54.3 million for the day and $169.4 million for the week. Genesis Trading’s bankruptcy restructuring and distribution of $4 billion in assets may also have contributed to the crash.  The US decision to allow Bitcoin as a reserve asset and the upcoming presidential race has added to market volatility. Market makers and large investors, or “whales,” have manipulated sentiment, further pressuring Bitcoin’s price. Technical analysis and key levels to watch Bitcoin’s price action have formed a bullish flag pattern, a continuation signal suggesting potential…

---

Filed under: News - @ August 4, 2024 2:12 pm