Bitcoin, like the rest of the cryptocurrencies, was affected by what happened in the financial markets worldwide.
Bitcoin, Ethereumand the main ones cryptocurrencies had a week that will be remembered for a long time. The stock markets fell sharply and dragged down all crypto assets, which closed a week with losses of up to 14% among the top ten tokens.
“The perfect stormthat’s what we can call what happened on Monday, August 5th. In the middle of summer, with a large part of large holiday operators, we saw how Bitcoin price fell back to $50,000. Not only Bitcoinbut all The markets crashed mainly due to three events“, they explained from Nodechartson-chain data company.
For its part, Michael Terpinfounder of Transform Ventures: “Regardless of the next 60 days, The bull market will continue along traditional four-year cycle lines with solid gains in October and November.”
The biggest casualties were Lido Staked Ether (-14.3%), Ethereum (-14%), Binance Coin (-7.8%), and Bitcoin (-2.5%).
Bitcoin as the dynamic this week
The rapid rebound that it had in the last hours happens just a few days after Bitcoin fell below a level of key support of u$s49,751on August 5, during the cryptocurrency Black Monday. It was its first drop below $50,000 since February.
Some traders believe the rapid reversal suggests the recent price drop may have been a bear trap – when experienced traders sell Bitcoin in a controlled manner to temporarily drive down the asset’s price and trap short-sellers.
“What a crazy week. Probably the most epic bear trap I’ve ever seen.”wrote pseudonymous cryptocurrency trader Byzantine General in an X post.
Sentiment among futures traders changed accordingly and is now heavily skewed towards long positions. According to data from CoinGlass, There are 52.5% in long positions compared to 47.5% in short positions.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
