Bitcoin Market Declines Despite Saturday Recovery
On Sunday, bears reversed Saturday's recovery in the Bitcoin market, sending altcoins back into a downtrend. The supply of Bitcoin increased, leading to a drop in the early hours of Asian trading on Monday.
Bitcoin Performance
Bitcoin is currently trading at $55,269, with an intraday loss of 1.30% and a low of $54,296. The bearish sentiment has led to long liquidations, with major cryptocurrencies falling by 5% or more.
Altcoin Performance
Ethereum, Solana, and Toncoin have declined by 5.25%, 7.23%, and 5.45%, respectively. Meme coins have been hit particularly hard, with DOGE, SHIB, and PEPE dropping by 8.08%, 7.64%, and 12.84%, respectively.
Bitcoin Price Analysis
Bitcoin's decline continues, with the price falling below $56,000. This has created a bearish engulfing candle on the daily chart, signaling a bearish trend. Long liquidations have added to the negative sentiment.
Bitcoin Hashrate Drawdown
The Bitcoin network's hashrate drawdown has reached levels last seen in December 2022. Historically, such drawdowns have coincided with major price movements. However, the current price action suggests otherwise, as the BTC price has fallen below $56,000.
Mt. Gox Payout
The payout scheme from the collapse of the Mt. Gox exchange in 2014 has raised concerns about a massive supply dump. Creditors will receive Bitcoin (BTC) or Bitcoin Cash (BCH) within the next 2 weeks or 3 months. This could potentially cause market instability.
Bitcoin Outlook
The ongoing market uncertainty is likely to result in continued bearish momentum this week. Bitcoin may seek support at $52,000, and a potential death cross between the 50D and 200D EMA could further extend the decline. Altcoins are also expected to experience significant selloffs and liquidations.