Bitcoin and Ethereum Flash Bearish Signals Amid Liquidity Concerns
Crypto markets are showing bearish signs as Bitcoin and Ethereum flash warning signals. Analyst Michaël van de Poppe said that if the current levels of support ($60,000 to $61,000) break, there's only one level left: new lows.
Van de Poppe noted that a recent hardware wallet drain pulled Bitcoin below key moving averages, and the structure remains barely intact above the 21-day and 50-day moving averages. He warned that if this doesn't hold, buyers will be needed at $60,000 to $61,000 or new lows are imminent.
TraderMorin confirmed the structural breakdown, noting Bitcoin formed a lower low Tuesday followed by a lower high overnight. The next logical target is the swing lows accumulated around $61,300 to $61,800.
Raoul Pal offered a counter view, saying that Bitcoin's weakness reflects liquidity conditions rather than any fundamental problem. He noted that Bitcoin is 87% correlated to global liquidity and nothing is broken.