U.Today – Amid the current price decline, Michael Saylor, co-founder and CEO of MicroStrategy, issued a message that resonated with the cryptocurrency community. In a tweet, Saylor wrote, “You are not selling your Bitcoin.”
Saylor’s message comes at a time when some investors may be tempted to sell, with the Crypto Fear and Greed Index suggesting the cryptocurrency market is in a state of extreme fear. Given the current market sentiment, panic selling fueled by fear and uncertainty could result in hasty liquidations of assets, prompting Saylor to issue a warning.
A brief rally in cryptocurrency markets following the release of U.S. jobs data on Friday was immediately reversed by volatile stock markets, sending the value of bitcoin (BTC), the largest cryptocurrency, to a one-month low.
Following the jobs report, the price of bitcoin (BTC) rose above $57,000 but reversed shortly thereafter and fell below $54,000, its lowest level since August 5.
Cryptocurrencies saw mixed price action in early Saturday trading, with Bitcoin down 3% in the past 24 hours to $54,360. Several cryptocurrencies also traded in the red, with , and Pepe posting losses of almost 4%.
According to data from CoinGlass, price action across cryptocurrency derivatives markets has triggered nearly $292 million in liquidations in the past 24 hours, with the volatility surprising leveraged traders, mostly those who had long positions and were expecting prices to continue rising.
What do indicators and analysts suggest about the BTC price?
According to Julio Moreno, head of research at CryptoQuant, Bitcoin’s frail performance could be due to a lack of demand growth. He added: “Indeed, demand is currently declining. Basically, all valuation metrics are in bear territory.”
CryptoQuant CEO Ki Young Ju noted in a tweet today that Coinbase’s (NASDAQ:) dominance of spot Bitcoin trading volume has returned to pre-ETF spot levels. For the bull cycle to continue, U.S. demand needs to rebound, Ju added, stating, “I expect this in Q4, but I could be wrong. We are mid-cycle and have not yet reached a retail bubble.”
According to cryptocurrency analyst Ali Martinez, “The accumulation trend indicator is approaching 0, which indicates that market participants are either distributing or not accumulating Bitcoin at this time.”
