Bitcoin’s Market Plunge and Potential Bullish Outlook
The recent market plunge on August 5 saw a reversal in Bitcoin’s funding rate for margin positions, indicating a possible bullish trend in the fourth quarter. This decline led to a significant deleveraging sweep, wiping out over $1 billion in BTC longs and resetting funding rates to negative. Short sellers now dominate leveraged positions, signaling a cooling off of the overheated market.
Bitcoin Whales Accumulate Amidst Market Uncertainty
Despite the market turbulence, “Smart Money” remained optimistic as Bitcoin whales increased their holdings by over 404,000 tokens in the last 30 days. This accumulation coincided with several liquidation events, suggesting strong market sentiment among long-term investors. With funding rates declining and creating room for potential upside momentum, the trend is likely bullish for Bitcoin.
Predictions and Potential for Bitcoin’s Price Movement
While whales continue to accumulate BTC, analysts from Bitfinex forecast a possible retest of support around $48,900 before a push towards all-time highs. Historical data shows that Bitcoin tends to struggle in August and September, but the fourth quarter could bring relief. Anticipated Federal Reserve rate cuts in September might inject liquidity into the crypto market and drive prices higher.
