{"id":16047,"date":"2024-08-13T11:57:52","date_gmt":"2024-08-13T08:57:52","guid":{"rendered":"https:\/\/forklog.com\/en\/expert-warns-of-bitcoin-correction-risks-amid-death-cross-formation\/"},"modified":"2024-08-13T11:57:52","modified_gmt":"2024-08-13T08:57:52","slug":"expert-warns-of-bitcoin-correction-risks-amid-death-cross-formation","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/expert-warns-of-bitcoin-correction-risks-amid-death-cross-formation\/","title":{"rendered":"Expert Warns of Bitcoin Correction Risks Amid &#8216;Death Cross&#8217; Formation"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>A bearish &#8216;death cross&#8217; has formed on the Bitcoin chart.<\/li>\n<li>The launch of BTC-ETF has increased the risk of heightened volatility over the weekend.<\/li>\n<li>Outflows from Grayscale&#8217;s ETHE have paused.<\/li>\n<\/ul>\n<\/div>\n<p>The formation of a &#8216;death cross&#8217; on the Bitcoin chart signals a potential new wave of sell-offs, despite the current rebound. This was highlighted by YouHodler&#8217;s risk manager, Sergey Gorev, as reported by <a href=\"https:\/\/www.theblock.co\/post\/310619\/chart-indicators-show-bitcoin-could-be-beset-by-a-new-wave-of-sell-offs-analyst-says\">The Block<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"569\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-1147-1024x569.png\" alt=\"1-1147\" class=\"wp-image-238812\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/1-1147-1024x569.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/1-1147-300x167.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/1-1147-768x427.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/1-1147.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: The Block.<\/figcaption><\/figure>\n<p>This signal occurs when the 50 <span data-descr=\"day moving average \" class=\"old_tooltip\">DMA<\/span> crosses below the 200 DMA.<\/p>\n<p>Valentin Fournier from BRN maintains a cautious outlook on Bitcoin&#8217;s prospects. He recommends using the pullback to gradually increase positions due to the &#8216;room for growth before returning to the lower range.&#8217;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8216;Open interest is decreasing more than the price drop. This indicates a decline in investor confidence and interest as volatility remains high. Weekend trading volumes were also lower, suggesting a lack of strong support for sell-offs,&#8217;<\/em> the expert noted.<\/p>\n<\/blockquote>\n<p>In his view, volatility will not ease in August and September, leading to Bitcoin fluctuations between $49,000 and $69,000.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Elections and the Fed<\/strong><\/h2>\n<p>David Lowant, head of research at FalconX, stated that the digital gold price could exit its current range due to changes in the monetary policy of the <span data-descr=\"Federal Reserve System of the USA\" class=\"old_tooltip\">Fed<\/span> and the US elections.<\/p>\n<p>The expert recalled forecasts of a rate cut in September by 25-50 basis points, which, in his opinion, will increase interest in risky assets. Regarding the presidential race, he noted market uncertainty due to Kamala Harris&#8217;s less favorable position amid her close ratings with competitor Donald Trump.<\/p>\n<p>Lowant further explained that for a sustainable recovery of altcoins, improvements in narratives and liquidity trends are needed, as well as the removal of potential selling pressure from early investors.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8216;As <\/em><em>FDV<\/em><em> approaches pre-bull market levels, it may be time to pay closer attention to this segment,&#8217;<\/em> the expert emphasized.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>ETF Impact<\/strong><\/h2>\n<p>According to <a href=\"https:\/\/research.kaiko.com\/insights\/how-is-crypto-liquidity-fragmentation-impacting-markets\">Kaiko<\/a>, the launch of spot Bitcoin ETFs has concentrated liquidity during stock exchange trading periods, creating conditions for sharp price swings over the weekend during market stresses.<\/p>\n<p>Analysts noted that during the recent sell-off, quotes changed by 14% between the opening of US trading on Monday and the close on Friday. They estimate that similar volatility was observed during the banking crisis in spring 2023.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/2-857.webp\" alt=\"2-857\" class=\"wp-image-238803\"\/><figcaption class=\"wp-element-caption\">Source: Kaiko.<\/figcaption><\/figure>\n<p>Since the <a href=\"https:\/\/forklog.com\/en\/news\/sec-approves-all-11-spot-bitcoin-etf-applications\">approval<\/a> of BTC-ETF, the total inflow into products has reached $17.3 billion.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/3-484.webp\" alt=\"3-484\" class=\"wp-image-238804\"\/><figcaption class=\"wp-element-caption\">Source:<a href=\"https:\/\/bitcointreasuries.com\/#etfs\"> SoSoValue<\/a>.<\/figcaption><\/figure>\n<p>In total, BTC-<span data-descr=\"exchange-traded product\" class=\"old_tooltip\">ETP<\/span> holds 5.02% of the available supply of the first cryptocurrency.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/4-309.webp\" alt=\"4-309\" class=\"wp-image-238805\"\/><figcaption class=\"wp-element-caption\">Source:<a href=\"https:\/\/bitcointreasuries.com\/#etfs\"> BitcoinTreasuries<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\"><strong>ETH-ETF<\/strong><\/h2>\n<p>On August 12, the segment of spot Ethereum-ETF recorded zero changes in Grayscale&#8217;s ETHE for the first time since trading began. In comparison, GBTC<a href=\"https:\/\/forklog.com\/en\/news\/grayscale-ceo-predicts-stabilization-of-gbtc-outflows\"> took<\/a> nearly four months before it saw its first day without fund outflows.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/5-200.webp\" alt=\"5-200\" class=\"wp-image-238806\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/sosovalue.xyz\/assets\/etf\/us-eth-spot\">SoSoValue<\/a>.<\/figcaption><\/figure>\n<p>In previous trading days, investors withdrew $2.3 billion from the product. This led to net total outflows from ETH-ETF of $400 million, contributing to Ethereum&#8217;s weakness in the early days of trading instruments.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/6-144.webp\" alt=\"6-144\" class=\"wp-image-238807\"\/><figcaption class=\"wp-element-caption\">Source: SoSoValue.<\/figcaption><\/figure>\n<p>Before the ETF launch, assets in ETHE amounted to $8.6 billion. As of August 12, the figure fell by 40% to $5.08 billion.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/7-91.webp\" alt=\"7-91\" class=\"wp-image-238811\"\/><figcaption class=\"wp-element-caption\">Source:<a href=\"https:\/\/farside.co.uk\/eth\/\"> Farside<\/a>.<\/figcaption><\/figure>\n<p>From August 5 to 9, inflows into spot Ethereum-ETF totaled $104.8 million. For the first time since the approval of the instruments, the trend turned positive.<\/p>\n<p>Earlier, the <span data-descr=\"New York Stock Exchange\" class=\"old_tooltip\">NYSE<\/span> approached the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> with a proposal to amend rules allowing it to list and provide trading options based on spot Ethereum-ETF from Bitwise and Grayscale.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A bearish &#8216;death cross&#8217; has formed on the Bitcoin chart. The launch of BTC-ETF has increased the risk of heightened volatility over the weekend. Outflows from Grayscale&#8217;s ETHE have paused. The formation of a &#8216;death cross&#8217; on the Bitcoin chart signals a potential new wave of sell-offs, despite the current rebound. This was highlighted by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[46,943,1145,1150],"class_list":["post-16047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethereum","tag-grayscale-investments","tag-market-analysis","tag-news-plus"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/16047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=16047"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/16047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/16046"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=16047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=16047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=16047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}