Bitcoin‘s efforts to keep climbing are meeting resistance, resulting in a large-scale selling event in the cryptocurrency market. Over 40 million long investment positions have been terminated.
The substantial decline in Bitcoin’s price has caused unease among investors and experts, prompting them to scrutinize the factors behind this recent drop. At the moment, the value of BTC is being bought and sold at $64,888, representing a 2.38% decrease from its peak.
BTC/USD 1-day price chart
Bitcoin has encountered strong opposition in its recent effort to rise above the $66,000 threshold, resulting in a sell-off. Additionally, technical signals such as the TD Sequential have signaled a potential shift in Bitcoin’s price trend.
If Bitcoin (BTC) drops below the important support of $65,000 that it currently holds, analysts warn that this could lead to increased selling and potentially larger price decreases.
Bitcoin Funding Rate Turns Negative Post-Halving
This year’s Bitcoin halving occurred shortly after the market experienced a shift in sentiment, as indicated by the first negative funding rate of the year. A negative funding rate signifies that there are more short positions than long ones among traders, contributing to the decreasing price trend for BTC.
The happening is significant because it reveals how the Bitcoin halving affects its network activity and investor attitudes. Already, we see evidence of this impact in market trends suggested by derivatives information, suggesting a shift toward pessimistic outlooks.
Despite Bitcoin’s recent dip, there are signs that the market may be turning up once more. Following two consecutive days of unfavorable funding rates, Bitcoin has rebounded after its halving event. Additionally, the total open interest has spiked, indicating a growing optimism among traders.
An uptick in the BTC Long-to-Short Ratio indicates that investors currently hold a more positive outlook towards Bitcoin than a negative one, supporting the optimistic perspective.
More modern research proposes that the most recent Bitcoin halving may have had a stronger influence on the price of Bitcoin rising, compared to the previous halving. This could possibly indicate an extended period of bullishness ahead.
Crypto Options Expiry Adds to Market Volatility
With Bitcoin facing resistance from sellers and bearing unfavorable signals, the approaching maturity of crypto options brings an extra dose of unpredictability to the market. Approximately $9.4 billion in options for Bitcoin and Ethereum are due to expire, increasing the likelihood of price swings in the near future.
Market players closely monitor the expiration date of Bitcoin (BTC) options contracts because it can influence price movements. Once the contracts expire, trading volume usually increases, and volatility often spikes as investors adjust their positions.
Additionally, Arthur Hayes has voiced his belief in Bitcoin’s future direction, referring to it as the most robust form of currency ever made. He bases this view on the persistent issue of fiat currency inflation. Consequently, Hayes anticipates a positive trend for Bitcoin and encourages investors to seize the chances offered by market downturns.
Peter Schiff Predicts #Bitcoin (BTC) $60K Support Won’t Hold
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2024-04-24 21:17