Yesterday, BlackRock ETF's massive outflow of funds triggered a chain reaction in the market, and the market fell sharply. Bitcoin once plummeted by 3%. Market sentiment turned pessimistic in an instant, and many people believed that Bitcoin might fall to $55,000.
Obviously, the market has formed a "natural reaction" to the decline. After six consecutive months of decline, many investors have developed a "broken jar" mentality, expecting a larger decline before buying the bottom. In the past, everyone dared not imagine that ETH would fall to $2,100 and Bitcoin would fall to $49,000, but with the lessons learned on August 5, the market's imagination space has been further opened.
Recently, many people predict that BTC may fall to $40,000, Ethereum to $1,600, and altcoins may be cut in half again. Market sentiment is similar to the trend in February and March. At that time, when it rose, everyone predicted the high point, and now when it falls, everyone predicts the low point. Whether it rises or falls, many people always care about only one issue: price.
In August, many people frequently changed their views, changing their bull and bear expectations once a week, adjusting their buy and sell points once a day, and even analyzing market trends every hour. As a result, both long and short views were expressed, and both bull and bear market arguments were mentioned. Investors became confused and exhausted in the process of frequent entry and exit.
Last night's market experienced the last drop in August. Fortunately, Bitcoin stopped falling again at $58,000. This is very critical for the upcoming September, because $58,000 is an important support level. If it is maintained, it means that the possibility of a sharp decline is greatly reduced. This is also the starting point for Bitcoin to hit $65,000 from $58,000, indicating that the bullish forces below are still strong. Stopping the decline again means that the price may go further when it rises next time.
