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Bitcoin Continues to Fall. What’s Fueling the Decline?

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Bitcoin Continues to Fall. What’s Fueling the Decline?

  • Bitcoin Whale’s $82.37 million worth of BTC transfer sparks community curiosity.
  • Trading volume dropped 5% in the past 24H as investors remain cautious.

Bitcoin, the leading cryptocurrency by market capitalization, is currently experiencing a turbulent October. It began the month by breaking the $28,000 resistance level, but as of now, the price has dipped to $27,097. While various factors are contributing to this instability, the crypto community is abuzz with speculation about the possibility of an extended bearish trend.

The ongoing conflict in the Middle East has become a notable factor affecting Bitcoin’s performance, with repercussions spilling over into the cryptocurrency market. Bitcoin (BTC) and other assets have experienced a short-term decline in value. This was instigated by Hamas, which launched a surprise weekend attack on southern Israeli towns.

Furthermore, Bitcoin’s trading volume has seen a 5% decline in the past 24 hours, settling at $11 billion. This drop in trading activity is reflective of the caution that investors are currently exercising.

Downfall Upcoming?

Meanwhile, prominent CNBC host Jim Cramer recently issued a warning about Bitcoin, suggesting that the digital currency may be on the brink of a significant downturn. Cramer’s caution was framed in the context of helping viewers find ways to safeguard their investments. He stated, “I can’t endorse gold as an option, and Bitcoin, well, it seems Mr. Bitcoin is about to face a substantial drop.”

Contrastingly, Arthur Hayes, the former CEO of cryptocurrency exchange BitMEX, projected an optimistic outlook for Bitcoin’s price, anticipating it could reach a remarkable range of $750,000 to $1 million by 2026. Hayes believes that a major financial crisis, potentially worse than the Great Depression, will precede this growth, with the cryptocurrency market witnessing an extraordinary bull run alongside stocks, real estate, art, and other assets.

Intriguingly, a Bitcoin whale hours ago, conducted transfers involving 3,000 BTC, valued at approximately $82.37 million. These transactions mark the first significant activity in six years, sparking curiosity within the community.

Will the Bulls Take Over?

A closer analysis of BTC’s current price movements suggests a bearish trend. The 9-day exponential moving average (EMA) has risen above the current trading price, settling at $27,465. Additionally, the daily relative strength index (RSI) stands at 49, indicating that Bitcoin is nearing oversold territory.

BTC Price Chart, Source: TradingView

If the price manages to breach the $28,000 level, it may surge towards the $30,600 range. Conversely, if the bears push the price below the $27,300 support level, it could test the $26,000 level.

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