Bitcoin price drops amid rising geopolitical tensions and whale sell-offs. Market sentiment moves back into the fear zone.
Bitcoin Price Drops as Fear Returns
Bitcoin’s price took a hit, retreating for four consecutive days, with increasing geopolitical tensions and whale sell-offs driving the decline. The crypto fear and greed index has moved back to the fear zone, signaling investors’ cautious sentiment. On Thursday, it fell to $60,200, marking its lowest level since September 18, and is now 8% below last week’s peak.
Geopolitical Tensions Trigger Risk-Off Sentiment
The global market has reacted strongly to growing geopolitical risks, with major indices like the Dow Jones and Nasdaq 100 continuing their sell-off. The US dollar index surged to $101.50, its highest level since mid-September, reflecting a shift towards safer assets. This broader market sentiment has impacted risky assets like Bitcoin, which fell alongside other major financial instruments.
Whale Sell-Offs Contribute to Bitcoin’s Decline
Recent whale sell-offs have added pressure to its price drop. Ceffu, one of the largest holders, sold 3,372 Bitcoin, valued at over $211 million. This entity, according to Arkham, holds more than $2 billion in assets, including Ethereum, Solana, and Avalanche. Another investor offloaded 265 Bitcoins, turning a $6.2 million investment from two years ago into $17.5 million.
Social Media Sentiment Fuels Market Reversal
Santiment reports that Bitcoin’s reversal is partly due to rising enthusiasm on social media. Historically, when positive sentiment spikes on platforms like Twitter, Bitcoin tends to decline. The crypto fear and greed index reflects this shift, dropping to 39 from last week’s high of 60, indicating that investor caution is once again taking hold.
October Historically Strong for Bitcoin
Despite the current downturn, October has historically been a strong month for Bitcoin, with an average return of 20.6%. November tends to perform even better, averaging a 46% return. Analysts believe that more Federal Reserve rate cuts and the end of the U.S. election period could act as positive catalysts, pushing it higher.
Bitcoin Price Faces Key Resistance
Bitcoin recently hit key resistance at the $66,000 level, a price point that connects the highest swings since March this year. According to veteran trader Peter Brandt, its price must break through this resistance for a clear upward trend. However, the cryptocurrency remains above its 50-day and 200-day moving averages, and it has formed an inverse head and shoulders pattern, a sign that it may rebound soon.
Outlook for Bitcoin
While current market conditions appear challenging, Bitcoin has shown resilience during periods of volatility. Analysts will closely watch how it performs in the coming weeks, especially as October is known for stronger returns. The focus remains on whether it can break through the $66,000 resistance to confirm a new upward trend.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
