Bitcoin oscillates nearly $ 103,700. There is an increasing uncertainty in its price action as global tensions increase. The feeling of retail is also weakening, adding to the pressure on the BTC. But the current drop can be a cooling phase, not the end of the bull cycle.
The feeling of retail strikes the lows of April
The Crypto Santly Analysis Society recently shared that the feeling of retail has become strongly negative, reaching its lowest point since early April. This is similar to the levels observed in April, just before the bitcoin rebound. With rising lower comments, panic could report a rebound.
The Fed rates are also stable, which maintained the BTC between $ 100,000 and $ 110 K. The chain data show that whales accumulate while the traders retire.
A healthy cooling phase?
The cryptography market is currently in the slow correction phase. Altcoins have been decreasing since December, while Bitcoin remains stuck between $ 100,000 and $ 107,000. Ethereum is struggling below $ 3,000, and the overall trading volume is declining, which is clear signs that retail investors remain for the moment.
However, there was no major accident or negative event. This is a typical cooling period in a greater upward trend, similar to what happened in 2017 and 2021. These phases often follow major rallies and can last a few months.
For the future, there is also a positive macro signal. The Fed can reduce rates in September, with a chance of 71.8% according to CME Fedwatch. This could stimulate the cryptography markets, and even the anticipation of rate reductions can raise feeling and bring life back to risky assets.
The cycle can extend to 2026
Real Vision CEO Raoul Pal also believes that the current cryptography market is closely like 2017, when Bitcoin increased regularly before exploding in December. He notes that the macro-conditions indicate that this cycle could be longer than expected, possibly extending to T2 2026.
Many long traders have recently been destroyed on Binance while open interest has dropped. This “cleaning” occurred just after the Fed made a rate break. With fewer traders now in risky positions and past trends showing that Bitcoin often increases after such events, cryptocurrency analysts see this as a potential configuration for a bitcoin rebound.
James Wynn warns against the accident
Crypto Trader James Wynn added to his short film of $ 70 million, warning of a major market accident. He quotes the increase in Irano-Israeli tensions, the drop in retail interest and liquidity problems. Wynn thinks that the United States entering the conflict could trigger a global crisis, but he thinks that crypto will rebound after the decline.
