The cryptocurrency market will recover from the recent panic selling, says the analytics platform
- Santiment tweeted yesterday that traders have panicked and sold bitcoin recently.
- According to the company, prices have historically increased when FUD words such as “sell” and “bearish” appeared.
- The PPI data due later today may postpone the cryptocurrency market recovery to next week.
Blockchain intelligence firm Santiment tweeted yesterday that many traders and investors have panicked and sold (BTC) over the past 24 hours. According to the post, this dumping was a result of the BTC price dropping to $27.1K recently. This happened after yesterday’s CPI data came out lower than expected.
Fortunately, Santiment added to his tweet that prices have been showing signs of recovery since then. The company also referred to historical data which showed that prices in the crypto market spiked when fear, uncertainty, and doubt (FUD) words such as “sell” and “bearish” popped up.
At the time of publication, the total cryptocurrency market cap is down 0.24% and is around $1.14 trillion according to CoinMarketCap. Additionally, BTC, the market leader, fell 0.52%. As a result, the price of the cryptocurrency reached $27,489.79. This negative price performance added to its negative weekly performance – pushing the weekly total loss to -5.75%.
BTC/USDT Daily Chart (Source: TradingView)
BTC pulled back from the consolidation channel between $27,727.19 and $29,972.72 last week. At press time, BTC is attempting to reclaim above $27,727.19, which is evident from the wick below the current daily candle.
Technical indicators on the daily chart of the leading cryptocurrency suggest that the bitcoin price will continue to decline in the next 24-48 hours. If this bearish theory holds, the cryptocurrency price will move towards $27,100 in the coming days. On the contrary, closing BTC above the $27,727.19 mark in the next 48 hours could lead it to rise again to $28,050.
An early confirmation of a bullish reversal of the current trend would be when the daily RSI line breaks out and then starts to slope positively towards the oversold zone. However, the PPI data due later today may delay any potential recovery until next week.
Disclaimer: Opinions and opinions, as well as all information shared in this price analysis, are published in good faith. Readers should do their research and due diligence. Any action taken by the reader is at their own risk. Coin Edition and its affiliates will not be liable for any direct or indirect damage or loss.
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