• Bitcoin dips nearly 2% as geopolitical tensions rise and whale selloffs increase.
  • Whales moved 5,000 BTC to exchanges, signaling potential sell pressure.
  • Analysts warn of further drops unless Bitcoin breaks the $71K resistance level.

Bitcoin (BTC) continues to navigate choppy waters, slipping nearly 2 percent in the last 24 hours. After rebounding above the 50-day moving average, the flagship coin retested the crucial $60K support level. 

As fear swept the market, Bitcoin’s fear and greed index dropped to 37 percent, signaling growing unease among traders. As the post below suggests, the possibility of a steep selloff below $50K looms, especially as geopolitical tensions escalate.

#Bitcoin could drop to $52,000 if the governing pattern behind the recent price action is a descending parallel channel! pic.twitter.com/CEAbdWXCrB

— Ali (@ali_charts) October 2, 2024

Whale Activity and ETF Selloffs Intensify

On-chain data reveals that Bitcoin whales are on the move, with nearly 5,000 BTC, worth about $300 million, flowing into centralized exchanges. This mass migration of funds, led by Coinbase Pro, suggests looming sell pressure. 

Market watchers also point to significant outflows from the U.S. Bitcoin ETFs, with BlackRock’s IBIT seeing a net loss of $13 million. Meanwhile, Grayscale’s GBTC and ARK’s Bitcoin ETF lost $27 million and $60 million, respectively. 

This heavy bleeding suggests that institutional confidence in Bitcoin may be waning. The volatility in Bitcoin reflects more than just whale behavior. Analysts are linking the sharp movements to global uncertainty. 

Tension in the Middle East and Europe have only fueled market anxiety. With the U.S. general election on the horizon, the crypto market’s future feels uncertain. Republican candidate Donald Trump has promised to turn the U.S. into a crypto hub, which could be pivotal to Bitcoin’s recovery.

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Support Levels Tested, What Lies Ahead?

Technically, Bitcoin isn’t out of the woods yet. Analysts believe that unless Bitcoin consistently closes above the July peak of $71K, a drop below $50K may be inevitable. Support may emerge between $58K and $54K, but traders remain cautious.

Additionally, rate cuts in the U.S. could breathe new life into the market. The broader economic landscape, shifting under the weight of global crises and changing policies, may catalyze a bull run soon. 

With more than 50 million crypto investors in the U.S., the political and economic shifts promise to shape the next phase of Bitcoin’s journey. For now, short-term technical outlook and market sentiment remains predominantly bearish for BTC.

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