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According to Popular Analyst, Short-Term "Extreme Signals" Came with the Recent Bitcoin Decline! - Coin Newsletter
Augustine Fan, Head of Analysis at SignalPlus, warned investors that technical indicators are giving extreme bearish signals for Bitcoin in the short term.
SignalPlus Analysis President Augustine Fan said that there has been an increase in “short-term extreme decline” signals in technical indicators regarding the recent sharp drop in the price of Bitcoin (BTC). Fan particularly emphasized that the large-scale Bitcoin purchases made by MicroStrategy (MSTR) through borrowing have further increased the pressure on the market.
Pessimism dominates ETF outflows and the options market
According to CME Group data, it was emphasized that the volume of options for Bitcoin futures decreased by 50%, with investors shifting from bullish positions to bearish options (puts). This movement in the options market indicated that investors expect lower prices in the future.
The negative picture in the crypto markets is not limited to Bitcoin. Ether (ETH) lost %10, XRP %9.75, and Solana (SOL) lost %9.73. The total market value dropped to $2.63 trillion, experiencing a %6.5 decrease.
Trump's tariff decision put extra pressure on markets
Fan noted that the market decline was triggered by the US President Donald Trump's decision to impose an additional 10% customs duty on China. He expressed that the selling pressure in traditional markets also affected the cryptocurrency markets due to the high correlation of Bitcoin with the S&P 500 index.
Finally, Fan expressed the need to be cautious, stating, “Investors are in extreme fear. Liquidity constraints and continued institutional selling make it difficult for the markets to recover. It is difficult to see any positive signals in the short term.”