Bitcoin Faces Bearish Sentiment Amid Price Slump and Market Predictions

By: Isha Das

Bitcoin's price has recently fallen below $64,000, fostering a predominantly negative sentiment among investors for four consecutive weeks. This downturn has been exacerbated by new insights predicting further market corrections. As per CryptoQuant analysis, key Bitcoin metrics such as the Adjusted Spent Output Profit Ratio (ASOPR) indicate potential further downturns. The ASOPR, which measures the profit ratio of spent outputs, suggests investors are selling at a profit when the ratio exceeds 1, usually indicative of bullish market conditions. However, when ASOPR approaches the critical 1.08 threshold, a market correction often follows, based on historical data.

A CryptoQuant analyst highlighted that this pattern has been consistent through several market cycles, using the 200-day moving average (MA) as a significant marker for long-term price trends. Currently, Bitcoin's performance under this key moving average line confirms a cautious outlook implied by ASOPR. With Bitcoin's price at around $64,000, marking a 14% drop from its recent peak, these indicators suggest the market may still be in a phase of reassessment and potential adjustment.

Furthermore, despite positive industry changes, Bitcoin's value continues to struggle. Standard Chartered Plc announced the inauguration of a new trading desk for Bitcoin and Ethereum, indicating a major move into spot cryptocurrency trading. Similarly, the Gemini founders, the Winklevoss twins, have significantly supported Donald Trump's presidential campaign by donating $1 million worth of Bitcoin each, emphasizing his status as a pro-Bitcoin candidate.

However, these positive measures have yet to translate into meaningful upward price movement. Bitcoin recorded a 1.1% decline in the last 24 hours, bringing its current price to $63,935. Despite these downward trends, analyst Ansem projects that Bitcoin may stabilize within the $58,000 to $60,000 range for an extended period.