Bitcoin Price Surges 4% Amid Concerns of Falling Below $50K
The price of Bitcoin experienced a 4.4% increase after a recent dip to $56,150, raising concerns about a potential drop below the $50,000 mark. Both casual traders and institutional investors were affected by the market movement, leading to significant liquidations.
Based on data from Cointelegraph Markets Pro and TradingView, the recent United States unemployment data played a role in the market dip. CoinGlass, a monitoring resource, reported a total of $75 million in BTC long and short liquidations within a 24-hour period.
Noted trader Daan Crypto Trades described the market movement as a “Bitcoin Sweeping masterclass,” while CrypNuevo pointed out that BTC/USD remained within its intraday range. Material Indicators, a trading resource, identified a “death cross” on 4-hour timeframes, highlighting the potential for establishing long-term support.
Keith Alan, co-founder of a prominent trading platform, suggested the possibility of Bitcoin experiencing a significant price downturn, potentially revisiting the six-month lows seen earlier in August. Additionally, there is concern about a potential drop to a rising trendline at around $45,000, as reported by Cointelegraph.
In the derivatives market, onchain analytics platform CryptoQuant observed a rare event in the past year. Funding rates for Bitcoin were reported to be at their most negative in almost a year. This negative funding rate indicates a dominating presence of short positions in the perpetual market, contributing to a pessimistic market sentiment, as explained by contributor EgyHash in an Aug. 16 blog post.
It is important to emphasize that this article does not constitute investment advice or recommendations. All investment and trading decisions involve risk, and it is essential for readers to conduct their own research before making any investment decisions.
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