The Bearish Cloud Looms Over Crypto and Global Markets: Will Bitcoin and Bitcoin Cash Survive the Storm?
The bearish cloud looming over the crypto and global markets has grown darker amidst the ongoing conflict in East Asia. The tension in the global markets has led to a 15% loss in the total valuation of the crypto industry in just three weeks, with Bitcoin crashing below $63,000 to $2.224 trillion.
In the midst of this sell-off, the net inflow of Bitcoin ETFs has been negative for two consecutive trading days. Only Grayscale Bitcoin Trust and BlackRock’s $IBIT saw outflow/inflow, while the rest had zero net flows for the second trading day.
With Bitcoin struggling to survive above $60,000, the underlying support trendline is under extreme selling pressure. The demand zone at $62,000 is failing to provide any cushion for a reversal in BTC prices. The bearish sentiments due to the Iran-Israel conflict are undermining hopes for a Bitcoin Halving rally, with the possibility of a drop below $60,000 looming.
As for Bitcoin Cash, closely related to Bitcoin, it faces a strong supply force due to the crash in BTC prices. The downfall has erased 30% of the Bitcoin Cash market cap, with the BCH price potentially dropping to $400. The golden crossover in the weekly chart is under question, signaling a potential further decline.
However, if BTC buyers manage to revive the bull run, Bitcoin Cash could see an amplified sprint in recovery, with resistances at $605 and $762 according to Fibonacci retracement levels. The future of both Bitcoin and Bitcoin Cash remains uncertain as the global markets continue to be plagued by conflict and uncertainty.
