NAIROBI (CoinChapter.com)—It seems even Bitcoin isn’t immune to gravity. The latest chart making rounds on social media is not for the faint of heart, particularly if you’ve been betting on Bitcoin’s bull run. It shows Bitcoin’s slide from its lofty perch at around $74,000 in August down to a less majestic spot below $60,000.
Stalled Bitcoin Rally Sparks 2019 Deja Vu
Crypto strategist Benjamin Cowen highlighted this in a recent video, noting the cryptocurrency’s inability to breach the $70,000 resistance. Drawing parallels to the 2019 correction, Cowen pointed out the absence of fiscal stimuli such as rate cuts and quantitative easing, which supported past rallies. “If Bitcoin can’t break through and starts to fade, we could see more of those 2019 similarities,” Cowen explained to his 818,000 YouTube subscribers.
Cowen also noted the potential need for economic interventions to spur a rally. “Perhaps another rate cut or more quantitative easing could propel Bitcoin to new heights,” he suggested, underscoring the impact of broader economic policies on crypto valuations.
Contrasting with Cowen’s cautious stance, another prominent crypto analyst, TechDev, offers an optimistic forecast for BTC. On X, TechDev drew comparisons between Bitcoin’s price movements and the historic rally of Japan’s Nikkei index which began in 1975. He told his 473,000 followers, “This next phase could be more challenging to predict than you might expect.”
TechDev emphasized the unpredictability of market shifts that could rapidly elevate Bitcoin’s value. “When the broader market catches on, expect swift gains. Historically, just 30 days have driven 99% of Bitcoin’s growth over the past decade,” he pointed out.
Institutional Investors Bet on Recovery Amid Declines
As Bitcoin struggled to regain its bullish momentum, institutional investors seized the opportunity to accumulate. Oct. 21 saw U.S. spot Exchange Traded Funds (ETFs) register $297.60 million in inflows. These were led by BlackRock’s IBIT fund, which contributed $332.30 million.
However, despite these inflows, Bitcoin’s price failed to hold the $70,000 level, facing a sharp rejection that sent it tumbling to the lower $67,000 range.
Diverging from institutional behavior, large-scale individual investors, or “whales,” have also made notable moves. Whale Alert recently tracked a significant transaction where 1,446 BTC were transferred to Binance, amounting to roughly $96 million.
In conclusion, Bitcoin’s recent market behavior presents a complex narrative of caution and optimism. While challenges such as resistance at the $70,000 level evoke memories of 2019’s downturn.
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