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Crypto Market Will Recover From Recent Panic Selling, Says Analytics Platform

Published 05/11/2023, 05:41 AM
Updated 05/11/2023, 06:00 AM
Crypto Market Will Recover From Recent Panic Selling, Says Analytics Platform
BTC/USD
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  • Santiment tweeted yesterday that traders panicked and sold BTC recently.
  • According to the firm, prices have historically risen when FUD words like “sell” and “bearish” have emerged.
  • The PPI data coming out later today may postpone the crypto market recovery to next week.

The blockchain intelligence firm Santiment tweeted yesterday that many traders and investors had panicked and sold Bitcoin (BTC) over the past 24 hours. According to the post, this dumping was a result of BTC’s price dropping down to $27.1K recently. This happened after the CPI data was released yesterday and came out lower than expected.

Fortunately, Santiment added to their tweet that prices have started showing recovery signs since then. The firm also referred to historical data which showed that prices in the crypto market have risen when Fear Uncertainty and Doubt (FUD) words such as “sell” and “bearish” emerged.

At press time, the total crypto market cap was down 0.24% and stood at around $1.14 trillion according to CoinMarketCap. In addition to this, the market leader, BTC, was also down 0.52%. As a result, the crypto’s price stood at $27,489.79. This negative price performance added to its negative weekly performance – pushing the total weekly loss to -5.75%.

Daily chart for BTC/USDT (Source: TradingView)

BTC has dropped out of the consolidation channel between $27,727.19 and $29,972.72 in the last week. At press time, BTC was attempting to recover back above $27,727.19, which is evident by the wick present underneath the current daily candle.

Technical indicators on the leading crypto’s daily chart suggested that BTC’s price would continue to fall in the following 24-48 hours, however. Should this bearish thesis play out, the crypto’s price will make a move toward $27,100 in the upcoming days. Conversely, BTC closing above the $27,727.19 mark within the next 48 hours could result in it climbing back to $28,050.

An early confirmation of a bullish reversal of the current trend will be when the daily RSI line levels out and then begins to slope positively toward the oversold territory. However, the PPI data being released later today may postpone any potential recovery until next week.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Crypto Market Will Recover From Recent Panic Selling, Says Analytics Platform appeared first on Coin Edition.

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