Why is BTC still hovering around the $58k Mark? - Market Sentiments Gone Wrong

For over two days, we've seen BTC fixed at $58k after going down to $56k due to the removal of 10k BTC from the market. We may be expecting another Dump in the market due to some negative sentiments in the crypto ecosystem. Let's talk about the stability bitcoin had at $58k for three days without moving or going down. What could transpired?

The price of bitcoin has fluctuated between the range of $56k and $61k for nearly seven days with the 50-Day simple moving average which provides a serious resistance at the $61k level. The value of bitcoin was lowered by 5.2% 2 days ago than it was in seven days . Those who traded shorts liquidated about $221 million in 24 hours.

Bitcoin could emerge from its consolidation state and cross to $70k, $72k accumulation zone and recover its price that's when the CVD crosses the zero lime and enters a position space. The fear and greed index in the market is still portraying extreme fear that Fed may crash the market or some other Manipulations as no one knows though.

Bitcoin price entered the weekend with negative sentiments as a result of some negative news in the space. I can vividly recall what happened earlier August 14th, 2024 when the transfer of 10k BTC by the US government was made. Bitcoin printed bearish cross on a daily chart. The death cross was visible when bitcoin's 50-Day moving average fell below its 200-day simple moving average.

It needs to retrace the 200-Day moving average at $62k to stabilise its price and then open a resistance around $70-$72k which would then lead to surges. If the price remains below this level for an extended period of time, it may show signs of dips .

Now, let's take a quick look at some news which may impact the market in no time. The historical data of bitcoin's price last bull run is not followed as the trend is quite different due to some manipulations. Wintermute according to news found in the crypto space transferred over 270 million dollars to an exchange a day before yesterday being August 17th with a major attention in the space as the reasons behind such transfer is still unknown which promoted lots of speculations and analysis among those observing the market.

Who knows if this transfer may cause another small dump in the crypto ecosystem tomorrow or next? There have been some negative news lately in the crypto space ranging from one situations to another.

As of the time of writing, bitcoin price dropped from $59,700 to $58,200. This drop in price is as a result of the negative sentiments hovering the market as people are optimistic that there'll be another dip before the FOMO comes in. Let's consider some factors that make the market unstable and constantly fluctuating around the $55k - $60k levels.

• Market manipulation is one of the major causes of these fluctuations as whales are doing some things on the system to be beneficiaries of their own trades. Luckily this period, they haven't been sell offs compared to previous weeks. Whales keep buying assets and stocking them in their wallet. As of yesterday, a whale purchased 50 billion shiba worth millions of dollars. If there's any major sell of crypto assets by these whales, there are high possibilities the market would crash.

• Another factor is the news in the Crypto ecosystem. The news about FED and the Inflation in US, the prediction of who would win presidential election which would greatly affect the price of bitcoin, the news of major transfers off wallets and news about extreme fear and crypto related fraud activities. These news all contribute to the movement in the price of bitcoin or a dump.

• Supply and demand factors contribute as well Including market sentiments which is on extreme fear now. The sentiment to bitcoin price increasing is very low and negative. August isn't a good month for the crypto space says one analyst.

These are some constitutional factors that contribute to the major sentiments in the market and the pull down of bitcoin price. The next question is, will this $58k level hold or would it fall back to $55k as a result of the transfer earlier mentioned? Let's see