The crypto market saw a notable downfall on Monday, and investors faced losses from their investments partly due to the increased risk in the global markets. Bitcoin dropped by over 16% due to increasing worries about the overall economy. The total liquidations over the last 24 hours have surged to $1.07 billion, with longs accounting for $908.51 million of the wipeout. Amid the sell-off, MicroStrategy chairman and co-founder Michael Saylor tweeted an optimistic message: “Believe in Bitcoin.” Saylor’s tweet at this time is encouraging; it gives people hope in an environment filled with fear and uncertainty.
Read Also: Samson Mow Predicts Bitcoin to Hit $1 Million Despite Recent Crash
Bitcoin Plummets to $49,000 in Continued Sell-Off
Bitcoin had an even worse start on Monday as it shook to reach $49,000 during the early trading hours, marking the fourth day of the decline. This drop took Bitcoin to the lowest point possible since the early part of the year, February to be precise. Despite the downturn, Bitcoin quickly recovered to $51,660 and currently trades at $52,861, marking a 12.35% drop in the last 24 hours. Over the past week, Bitcoin has faced a 24% decline, the steepest since the FTX exchange collapse.
The following factors can be identified as the reasons for the recent Bitcoin problems: Bitcoin trading analyst Ali Martinez noted that generally, August and September have proven to be bearish months for Bitcoin, averaging -7.82% and -5.58%, respectively. Also, the bulls have failed to hold the $57,000 as support, leading to a significant downturn. CryptoQuant reported that sellers could take Bitcoin down to $40,000 because of the lowest average unrealized profit and loss since November 2022.
Advertisement
Analysts Believe Bitcoin Could Rebound
While some analysts feel the trend is a downward spiral, others believe it may be reversed. Bitcoin analyst on Twitter, Ali Martinez noted that the 30-day Btc MVRV ratio has dipped to the lowest since November 2022. As for the TD Sequential indicator on the Bitcoin hourly chart, it still displays a buy signal, which means a retracement to $54,000/$56,000 is possible.
Saylor’s statement indicates that investors must maintain faith despite short-term market swings. As traditional markets continue to affect Bitcoin’s performance, the cryptocurrency community looks for indications of recovery. Financial guru and “Rich Dad Poor Dad” author Robert Kiyosaki commented on the Bitcoin meltdown, recommending investors to purchase the drop.
In conclusion, Bitcoin faces significant challenges amid a global market sell-off. However, optimistic messages from influential figures like Michael Saylor and Robert Kiyosaki offer a beacon of hope. Analysts believe that despite recent falls, there are signs of a possible resurgence. Investors remain cautious yet optimistic about a rebound in Bitcoin’s value as the market evolves.
Read Also: Elon Musk’s Cryptic Tweet Sparks Bitcoin Speculation Amid Market Crash
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.