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Negative Market Sentiment
The decline in the Bitcoin (BTC) price is simply a continuation of negative market sentiment, the same trend we have seen over the past few weeks. “These sentiments are fueled by a flood of depressing news that outweighs objective asset data,” said Jason Dean, an analyst at Quantum Economics. Dean’s long-term outlook is positive, but he believes that current price behavior is likely to continue in the immediate/short-term and may put further downward pressure. “Once fear sets in, it takes a while to break and you simply have to wait for capitulation before you can move back to “normalized” ranges.”
2. Leveraged Long Positions
According to Ben McMillan, founder of IDX Digital Assets, another reason is the leveraged long position that has worsened sales to the Asian Open on Friday. “This is nearly always the case with bitcoin,” said McMillan, who said that “$40,000 was an important support which has now turned into a resistance level and we could certainly see more downside over the weekend.”
