Despite the fact that major investors are increasing their bitcoin holdings, price charts indicate further falls in the near future, according to one trader.
Bitcoin (BTC) dropped below $26,000 in European early hours on Monday amid a generally bearish sentiment among crypto traders and the absence of new catalysts to rally markets.
CoinGecko data shows BTC dropped to $25,886 on Binance before recovering. XRP, ADA, and SOL plummeted as much as 2.2%, continuing a downturn from last week.
ETH declined 1.1% despite trading aggregation protocol 1Inch investing over $10 million in stablecoins from its treasury to buy 6,088 ETH late on Sunday, bringing some purchasing pressure to a tepid market.
Majors fell on Monday as conventional markets rose, with Shanghai Composition and Nikkei 225 up more than 1%, Singapore up 0.73%, and European indices up 0.36%.
FxPro trader Alex Kuptsikevich predicted additional falls based on price charts.
“The price is below its 200-week average and outside of its ascending channel, making the weekly technical picture for Bitcoin bearish,” Kuptsikevich said. The most likely short-term forecast is a $23.9-24.6K decline.”
A price chart with an ascending channel has higher highs and higher lows. A break below this indicates unfavourable price action by traders. Since August, traders have been gloomy: Futures traders are planning for a bearish market, while options traders foresee a greater decline.