The post Why is Bitcoin Price Down Today? Is a Major Correction Imminent? appeared first on Coinpedia Fintech News
Bitcoin’s (BTC) price closed in July with a dragonfly Doji candlestick after the bulls were rejected at around $70k. Bitcoin’s poor performance in the past two weeks has increased the fear of a further crypto correction in August. Furthermore, Bitcoin’s fear and greed index has dropped from 74 percent, greed, to around 52 percent, neutral, in the past two days.
The altcoin industry followed the same bearish path, with the total crypto market down over 3 percent to hover about $2.41 trillion on Thursday during the early Asian session. As a result, nearly $200 million was liquidated from the crypto-leveraged industry, mostly involving long traders.
Top Reasons Bitcoin Price Turned Bearish
FOMC Data
Bitcoin led the entire cryptocurrency market in a bearish outlook following high-impact economic data on Wednesday.
Notably, Federal Reserve Chairman Jerome Powell said that the US inflation has eased over the past year but remains elevated. Consequently, the Federal Reserve held its benchmark interest rate at 5.50 percent.
However, Powell indicated that a possible rate cut could occur in September if the inflation continues to ease.
Spot BTC ETFs Outflows
On Wednesday, Fidelity’s FBTC led in net cash outflows of about $31 million, closely followed by ARKB with around $4.6 million.
Meanwhile, Grayscale transferred $1.8 billion from GBTC to its Mini Bitcoin Trust via Coinbase Prime.
What’s Next
Bitcoin price has been forming a falling trend in the past few months after experiencing heavy resistance around $70k. The flagship coin is about to confirm a daily reversal pattern after forming a double top coupled with bearish divergence on the Relative Strength Index (RSI)
If Bitcoin price continues to fall in the coming weeks, the flagship coin could drop as much as $48k if the support range between $60k and $62k fails to hold.