Bitcoin Declined after US PMI Data showed that the economy is shrinking. According to the data, the US manufacturing PMI reading came in at around 47, down slightly from the previous month’s figure. Notably, traders are waiting on the sidelines ahead of this week’s key economic releases. So, BTC was already noting the volatile course. Meanwhile, a crypto analyst who caught Bitcoin’s 2022 low says time is running out for BTC bulls to flex their muscles.
US PMI shows economy contracting, Bitcoin plummets!
The latest US Purchasing Managers’ Index (PMI) data from S&P Global, which tracks both the manufacturing and service sectors, came in at 47.3 in September, down from 47.9 in the previous month. In particular, values below 50 indicate that the economy is shrinking. On the other hand, values above 50 indicate that the private sector is expanding.
Notably, this marks the sharpest decline in new orders since June 2023. The data also showed that the US manufacturing segment was heading towards contraction territory by the end of the third quarter of 2024. Meanwhile, this contraction data also seems to have affected trader sentiment, as evidenced by the recent drop in Bitcoin and other top altcoins. BTC and almost all altcoins in the top segment by market capitalization fell in the wake of the data.
Analyst warns of a longer bear market for BTC!
Analyst nicknamed DonAlt says that the technical conditions are ripe for Bitcoin to start a new bull run. According to the analyst, he points to the deep correction that took BTC below $50,000 in August. He notes that this is the leverage needed for the Bitcoin price to move higher. However, the analyst says that any signs of weakness at the moment would not be good for the leading crypto. Accordingly, he emphasizes that this weakness will probably put it in a position to witness a long bear market. In this context, the analyst makes the following statement:
The market has been wiped out so aggressively that it’s perfectly fair to say, ‘OK, we had a shakeout, which we usually get after a long consolidation, and now we can go up. So if it doesn’t go up now, if we break this support (at $58,000), I think it’s going to be a longer bear market with lows for six to 18 months. But I think there’s a very, very, very good chance and I think there’s a much higher chance that we’re going to go up from here than breaking this. I think we are in a good spot. But now that we have all the reasons to fall and we haven’t fallen and we’ve had devastation… I think if we go back there, it looks bad for the medium term.
DonAlt also points to a key level for Bitcoin bulls. In this context, he says that BTC will catch fire if it rises above the price area. In this regard, he shares the following assessment:
If you go back to $68,000 on the daily chart, it really doesn’t look like it wants to go any lower. With a cursory look at the market, now that we’re coming back from $68,000, even if there’s a pullback, you would expect it to start breaking out. This is the most important level that the bears have, so I wouldn’t be s**t-talking to them too aggressively. But I think they’re probably wrong, the bears are probably wrong. So I’m cautiously optimistic.
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