Bitcoin (BTC) started August with a bearish trend and continued to drop in the past 24 hours. The price fell over 2 percent, trading around $63,981 on Friday morning.
The decline also affected the altcoin market, reducing the total crypto market cap to about $2.39 trillion. As a result, over $245 million was liquidated from the crypto derivatives market, mostly impacting long traders.
Crypto Industry Gains Amid Geopolitical Tensions and Economic Uncertainty
As geopolitical tensions rise in the Middle East, the crypto industry has seen increased on-chain activity. The threat of escalating conflicts is expected to weaken fiat currencies, leading more investors to seek refuge in cryptocurrencies amid global economic uncertainties.
Source: X
Recent market data reveals that US spot Bitcoin ETFs saw a net cash inflow of approximately $50.64 million on Thursday. Additionally, MicroStrategy has reaffirmed its commitment to Bitcoin by planning to raise $2 billion to acquire more units.
Following recent market volatility, data from CryptoQuant suggests that we may see a period of consolidation in the coming months, potentially leading to a bullish breakout and a new all-time high.
Bitcoin Price Trends and Future Outlook
Over the past five months, Bitcoin has shown clear signs of macro consolidation, remaining within defined boundaries. Currently, the coin is in a falling trend, which some believe could be forming a bullish flag pattern.
Source: X
Technical analysis suggests that Bitcoin’s price might drop to between $48K and $53K in the coming weeks before a potential bullish breakout. This anticipated drop could set the stage for a significant upward movement.
Looking ahead, a possible interest rate cut in the United States later this year, coupled with the upcoming general election, is expected to contribute to a positive outlook for the crypto market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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