Bitcoin slides 8% as risk-off sentiment rises
Despite the downturn, October and November are typically strong months for Bitcoin, and current technical patterns suggest potential for recovery.
Bitcoin’s price has fallen for four consecutive days, hitting $60,200, 8% below its peak last week. The decline coincided with a broader risk-off sentiment among investors, spurred by rising geopolitical tensions following Israel’s response to recent attacks. Stock indices such as the Dow Jones and Nasdaq also saw sell-offs, while bond yields and the US dollar index climbed.
Adding to the pressure, large Bitcoin holders like Ceffu sold substantial portions of their assets, accelerating the price drop. Social media buzz around Bitcoin has also contributed to the decline, according to Santiment, with enthusiasm often leading to short-term price reversals. The crypto fear and greed index fell to 39 from last week’s 60, reflecting a shift in market sentiment.
Despite the recent downturn, October and November are traditionally strong months for Bitcoin, offering hope of a rebound. The coin remains above key technical levels, including its 50-day and 200-day moving averages, and has formed a bullish inverse head and shoulders pattern, suggesting a possible recovery ahead.
