After beginning the week above the critical $115,000 mark, Bitcoin (BTC) and the broader cryptocurrency market initially showed signs of recovery. However, BTC has resumed its downward trajectory, experiencing a 4% decline over the past 24 hours. This downturn has had a cascading effect on other altcoins, particularly Ethereum (ETH) and XRP.
This action is seen as a retaliatory measure against US sanctions targeting the Chinese shipping sector. Bitcoin and the crypto market were already reeling from a brutal selloff that began on October 10, which resulted in approximately $19 billion worth of leveraged positions being liquidated.
“The market now enters a consolidation phase, characterized by renewed caution, selective risk-taking, and a more measured rebuilding of confidence across both spot and derivatives markets,” commented analytics firm Glassnode.
In the short term, covering the current month, the Bitcoin outlook is neutral. Although a slightly bullish sentiment was noted yesterday, it has reverted to neutral as new data emerges, emphasizing the need for more information to make a conclusive decision.
Looking further ahead, in the long term (three to twelve months), the analysis remains extremely bearish for Bitcoin and crypto as the macroeconomic environment indicates an impending global economic upheaval, which many believe is closer than it appears.
When writing, Bitcoin trades just above its key support for the short-term at $110,300.
Featured image from DALL-E, chart from TradingView.com
