• Bitcoin (BTC) price action experienced its most extensive losses since November last week.
• The shock of the correction took some “greed” out of crypto sentiment, leaving investors in two minds as to whether the bull market is over or not.
• Market participants are monitoring macroeconomic data releases and Federal Reserve interest rate decision for potential catalysts.
Bitcoin Price Action Experiences Most Extensive Losses Since November
Bitcoin (BTC) price action experienced its most extensive losses since November last week, with BTC/USD losing around 10% before the weekly candle finally closed at around $27,600. This leaves BTC/USD battling for last month’s support and investors in two minds as to whether this could be a sign that the bull market is over or if there is more upside to come.
Catalysts for Potential Upside
Market participants are keeping an eye on upcoming United States macroeconomic data releases and the next Federal Reserve interest rate decision for potential catalysts that could lead to more sustainable upside. Some traders remain confident of retesting multi-month highs while others are betting on deeper downside.
“Greed” Removed from Crypto Sentiment
The recent correction has taken some of the “greed” out of crypto sentiment, leaving investors uncertain as to how things might play out going forward. While nothing is definite yet, spot premium levels have returned to where they were previously while trading at this price range and funding rates remain slightly negative across the board.
Analysts Weigh In On Current Situation
Popular trader Daan Crypto Trades summarized that spot premium was back to previous levels while funding rates remained slightly negative across the board, indicating a lack of “insane” behavior in markets yet. Fellow trader Crypto Tony maintained his target of $26,600 while Caleb Franzen from Cubic Analytics said higher levels must return for bulls to gain momentum.
It remains unclear how the situation will play out in Bitcoin markets but analysts agree that higher levels must return for bulls to gain control again. Macroeconomic data releases and Federal Reserve interest rate decisions will be watched closely by market participants who are looking for potential catalysts that could lead to more sustainable upside in BTC/USD prices going forward