As for the top ten cryptocurrencies of the top ten, nine remain in negative territory except for the stablecoin Tether that does not fluctuate its price too much because it follows the price of the dollar.
The main fall is registered by Solana (-9.5%), completed by Binance Coin (-8.5%), and Dogecoin (-7.5%). Cardano (-6.1%), and Polkadot (-6%) also fell sharply.
The causes of the fall of Bitcoin
A possible explanation for this correction in the price of the BTC, it may be given by the “whales”: Bitcoin (BTC) investors who bought at all-time highs of 2017 and even more novel. According to the Hodl Waves metric, coins that last moved in the last six to 12 months now make up the majority of the BTC supply.
Despite strong earnings and equally strong corrections in 2021, those who entered the market or added to their positions on or after November 2020 are refusing to sell. Hodl Waves, which tracks the age distribution of unspent transaction outflows (UTXO), shows that supply controlled by those six- to 12-month hodlers increased, from 8.7% in early June to 21.4% as of November. 17.
At the same time, coins held for several years declined only slightly, highlighting that modest sales have been made and that, with the exception of the six to 12 month group, investor resolve remains strong. The data underscore the theory that Few BTC owners intend to sell at current prices, even as these surround all-time highs.
However, as Cointelegraph reported, the distribution of coins by long-term holders, a classic feature of the peak phases of the bull market, has now begun. The last time this happened was also in November of last year. Meanwhile, more numbers that track “older” BTC also hint that lBitcoin’s oldest hands will remain quiet.
As on-chain analyst William Clemente noted this week, latency flow (Bitcoin’s market cap divided by annualized latency) remains low near the all-time highs for BTC / USD.
The high latency, Clemente explained, indicates that older coins are being spent. “Seeing the idle flow currently so low means that older coins remain relatively dormant,” he added in comments on Twitter on Wednesday.
For the moment, Support at $ 57,800 was not tested, as the market recovered $ 60,000 after landing at $ 58,500. Strong market hands contributed to Tuesday’s short-term rebound. Nevertheless, Technical indicators suggest that Bitcoin is not out of the woods yet, as a drop to $ 57,000 is possible. “A breakout of this level could point to a deeper drop, and attention could shift back to the $ 50,000 region, but as is always the case with bitcoin, that’s never clear,” said Craig Erlam, analyst at Onda. . “The extreme volatility that the market is prone to could cause a possible domino effect if more negative news emerges that takes prices to new lows,” commented XTB experts.
Source From: Ambito
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