24hoursworld

Bitcoin falls almost 7% due to slight profit taking and settles below $ 60,000

A few days after having exceeded the historical maximum, investors announced that bitcoin should maintain the support of US $ 62,000 in order not to fall to US $ 58,000. However, it appears that the sell orders outpaced the buy ones, sending the cryptocurrency to test demand at the current price.

There are analysts who attribute this drop to the great leverage used by traders in the market. Charles Edwards of Capriole Investments stated that price growth would not be sustainable if leverage levels remained so high. However, think that the rest of the metrics remain healthy.

Despite the drop, Bitcoin remains in eighth place in the select group of billionaire assets, outperforming the market capitalization of companies like Tesla and Facebook. The price would have to fall below $ 54,000 to lose the position.

Bitcoin recently broke its all-time high following news about the approval of the first Bitcoin Futures Exchange Traded Funds in the United States. After eight years of long waiting, there are already three public funds of this type in the North American country, belonging to the companies ProShares, Valkyrie and VanEck. The potential approval of a spot ETF could serve as an impetus for the price of Bitcoin to resume its bullish momentum in the last quarter of the year, which has historically tended to rise.

Still, experts call for calm, as the general uptrend would be preserved even if the largest asset by market capitalization sank to $ 50,000.

As for altcoins, Ethereum is down 5% and is just above US $ 4,000, while in other tokens the collapse is greater.

With this panorama of clear consolidation and slight profit taking, experts wonder when a new attack on the recent highs will be seen, since the market consensus continues to bet that the most traded of the crypto currencies will attack the US $ 70 .000. “Bitcoin is relatively flat, having rebounded strongly earlier in the week,” said Craig Erlam, an analyst at Oanda.

“Despite a brief drop below $ 60,000 over the weekend (repeating this Wednesday), it clung to that psychologically important support level and is now comfortably above it, leading us to wonder when we will see another run to the all-time highs, “he added to add that” there has been a lot of positive momentum in the market recently. and there is certainly no shortage of crypto holders right now. “

The Bitcoin Fear and Greed Index is starting to decline from its highest level in more than seven months, which suggests that buyers are starting to take some gains after a more than 50% rise in the price of the crypto currency over the last month. What’s more, data from Glassnode shows that long-term holders, the ‘HODlers’ are making cash, which usually happens when the asset reaches an all-time high.

However, based on the current price cycle, the long-term profit taking by holders appears to be modest relative to the extreme levels seen at the end of a bull market phase, suggesting that the bull market is still going on.

On the other hand, the total balance of bitcoins on exchanges continues to decline, suggesting that traders are keeping the coins in their wallets rather than making them available to exchanges.

“In relation to the supply in circulation, the balance of Bitcoin on exchanges is at levels not seen since January 2018,” Arcane Research wrote. “This could suggest that selling momentum is low at the moment.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts