Bitcoin price dumps as Ceffu sells again and fear returns

Bitcoin price has fallen for four consecutive days as the crypto fear and greed index returned to fear territory and geopolitical risks increased.

Bitcoin (BTC) has fallen to $60,200, its lowest level since September 18 and 8% below its high last week.

The current weakness comes as investors embrace risk-aversion sentiment amid rising geopolitical tensions after Israel pledged to retaliate for Tuesday’s attacks.

While risky assets such as the Dow Jones, S&P 500 and Nasdaq 100 indices continued their recent sales, bond yields rose. The US dollar index also rose to $101.50, its highest level since September 13.

Bitcoin also retreated as some whales continued to sell their holdings. One of the best sellers was Ceffu, which attracted 3,372 coins worth $211.3 million. The account sells Bitcoin, Ethereum (ETH), Solana (SOL) and Avalanche (AVAX). The organization has over $2 billion in assets, according to Arkham

Another investor sold 265 Bitcoins for $17.5 million last week. He bought these coins for $6.2 million two years ago and made a profit of $11.5 million.

According to Santiment, the current reversal is due to increased sentiment towards cryptocurrency on social media. In most cases, when there is such enthusiasm among social media users, Bitcoin tends to fall.

Meanwhile, the crypto fear and greed index has fallen from last week’s high of 60 to the fear zone of 39.

On the positive side, October is generally a strong month for Bitcoin, delivering an average return of 20.6%. This is followed by November, when average returns were above 46%.

Key catalysts that could push it higher are further rate cuts by the Federal Reserve and the end of the American election season.

Bitcoin price has reached a significant resistance on the Bitcoin chart by TradingView

Technically, the cryptocurrency also retreated after reaching the key $66,000 resistance. This is a notable price as it combines the highest volatility seen since March this year. Peter Brandt, a well-known trader, stated in his note that if it reverses this resistance and breaks above the all-time high, a clear breakout will be confirmed.

The recent rally in Bitcoin did NOT break the 7-month string of low highs and lows. $BTC
Only a close above 71,000 confirmed by the new ATH will indicate a continuation of the trend towards the November 2022 low pic.twitter.com/lFO9A20VPD

— Peter Brandt (@PeterLBrandt) October 2, 2024

On the positive side, it remained above the 50-day and 200-day moving averages, forming an inverse head and shoulders pattern. Therefore, there is a possibility of recovery in the coming days.