- Retail traders waited for a Bitcoin drop to buy, but prices fell further, raising doubts.
- Bitcoin’s decline is fueled by rising tariffs and a $900 billion crypto market loss.
- Whales are accumulating BTC, signaling a potential reversal while retail investors panic.
With the decline of Bitcoin, traders and analysts are now in a dilemma about whether to invest. On Friday, analytical platform Santiment pointed out that retail traders had been waiting for a drop to occur so that they could purchase cryptocurrency. Nevertheless, the price went down further by Thursday, which led to uncertainty regarding the next move in the market.
Global Trade Impact
In a YouTube video on Friday, analyst Rover highlighted that the decline in Bitcoin’s value can be attributed to certain factors, including the trade war between the United States and several countries. High tariffs of up to 100% on some nations have affected the market significantly, leading to huge losses, with over $900 billion lost in the crypto market within five weeks alone. The fear and greed index has reached extreme levels similar to those observed during the FTX collapse.
However, Rover noted that major corrections can be conducive to buying opportunities. The market has declined, but history has shown that such a situation has always led to a powerful upward turn. Short-term traders are squeezed out, which is usually followed by a much larger reversal. As the analyst pointed out, this may be the best time to buy Bitcoin at a cheaper price.
Related: Crypto Market Faces Downfall After Bitcoin Crashes Below $80K
Whales Vs. Retail Investors
Currently, whales are accumulating Bitcoin at an unprecedented rate while retail investors are selling their holdings. Whales have continued to accumulate Bitcoins at higher rates due to lower market prices. This is a marked departure from the retail community, which is increasingly panicking and selling off. In the past, when whales buy during a bearish trend, there is a possibility of a trend reversal.
Source: CryptoRover
The bearish trend is attributed to the performance of the US market and the escalated trade war, which is impacting the price of Bitcoin. Further, several analysts have identified the primary support levels at $73,000 and $72,000. In case the price breaks these levels, it may drop further to $53,000. As of press time, BTC is trading at $80,290, showing a 6.99% decline over the past day. However, the market continues to be bearish, and there is no clear indication of a bullish run for Bitcoin. Analysts focus on the support levels to determine when the bottom will be formed. Until then, traders and investors alike will have to watch and wait.
