Bitcoin $4000 Price Diving Puzzle ETF Experts

Bitcoin prices have fallen again with a massive four-thousand-dollar dump from just over $62,000 to bottom out at $58,000 during afternoon trading on Tuesday, August 27th.

According to Coinglass, 87,920 traders have been wiped out, with a total of $320 million in liquidations over the past 24 hours.

Since then, BTC has recovered marginally to trade at $59,600 at the time of writing, but crypto markets are once again deep in the red as the asset pulled back to support the last hit on 19 August

total #crypto The market cap is down 7% to $2.17 billion today #Bitcoin it fell below the $60,000 level 🔴 pic.twitter.com/AHifMHOvA0

— CoinGecko (@coingecko) August 28, 2024

Months more Chopsolidation?

ITC Crypto founder Benjamin Cowen noted that BTC has received another rejection of its bullish support band.

“If it follows the last cycle, the earliest this trend could change in a lasting way is *after* the rate cuts,” he added.

In a blog post on August 27, chain analyst James Check compared the current market structure to that of 2019.

“The similarities between the 2024 consolidation and the one we experienced in 2019 are uncanny and uncanny.”

There was a three-month bomb from $4,000 to $13,000 from April to June 2019, followed by 16 months of sideways trading.

The 2024 three-month bomb saw BTC rise from $40,000 to $74,000 between January and March. A similar tracking period could see this “consolidation” continue through mid-2025.

Meanwhile, ETF experts were perplexed by the panic selling.

“Bitcoin’s fears could be worse than the stock market’s,” commented ETF Shop President Nate Geraci, who also noted that BTC is up 40% year-to-date and has outperformed the S&P 500 by more than 20%.

Bloomberg ETF analyst Eric Balchunas was equally puzzled:

“OK Einstein, if ETFs bought $18 billion worth of Bitcoin (almost as much as Satoshi), who the hell is pouring?”

Altcoins bleeding again

Ethereum has broken off more than 10% in a one-day drop from $2,700 to $2,400 before recovering slightly to $2,472 during the Asian trading session on Wednesday morning.

The rest of the altcoins bled as usual, with bigger losses for Solana (SOL), Avalanche (AVAX), Near Protocol (NEAR), and Uniswap (UNI), among others.

However, crypto trader Luke Martin saw this as a buying opportunity, saying that altcoins are currently at the “sell your house to buy more” level before adding:

“The last time BTC was at this level was exactly 4 years ago in the summer of 2020, when the price went from $10,000 to $60,000 over the next 6 months.”

Altcoins currently at the “sell your house to buy more” level.

last time $BTC it was at this level exactly 4 years ago in the summer of 2020 when the price went from 10k to 60k over the next 6 months.

h/t @CryptoKoryo pic.twitter.com/vwaGkGE1FA

— Luke Martin (@VentureCoinist) August 27, 2024

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!