Bitcoin Falls Below $60K, Altcoins Face Negative Funding

Bitcoin is now facing major technical challenges after a crucial support level turned into resistance. This raises concerns as to whether this downward deviation signals a potential end to the bull market or is just a temporary setback before the continuation.

From a technical point of view, German Miles He discussed Bitcoin’s struggle to reclaim key support levels, such as the $59,000 and $64,500 levels, which are critical for a bullish reversal. He also explained the importance of these levels in determining Bitcoin’s near-term trajectory and its implications for the broader cryptocurrency market.

Moving beyond Bitcoin, he turned to Ethereum and other altcoins, examining their technical setups. He highlighted recent performance trends, noting that July has historically been positive for cryptocurrencies after negative returns in June, despite the current decline of 11% so far this month.

Discussing market sentiment, he noted a shift in funding rates for altcoins, with many now showing negative funding. This shift, from aggressively positive funding to negative funding, shows a cautious sentiment among market participants towards altcoins, suggesting accumulation opportunities during times of fear.

Where is the market going?

Miles shared charts and analysis to explain where we are in the market cycle, addressing the recent panic among market participants. Discussing the normality of summer market volatility, he advised caution without becoming overly bearish. From a macro perspective, he sees the potential for Bitcoin to rise, citing historical patterns and technical indicators such as the 200 EMA.

Despite the short-term concerns, he maintained a long-term bullish outlook, comparing the current market conditions to previous post-halving cycles. His technical analysis showed Bitcoin support at $53K and explained the importance of weekly and daily chart trends for future direction.

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