The price of Bitcoin lost about 10% of its value yesterday with a significant fall. Experts believe that the intersection of intra-chain factors and technical factors caused this fall.
to the the report The Bitcoin Telegraph, the price of Bitcoin yesterday, fell by 6% in just 4 hours as the new weekly candle opened.
Analysts cite three factors: the new weekly candlestick, the high rate of return on investment, and the influx of stable coin inflows, as the three main factors in the weak bitcoin price trend.
New weekly candle
Usually when a new weekly candle is opened, we will see an increase in fluctuations in the price of bitcoin; Because the market trend on Monday, can determine the performance of Bitcoin until the end of the week.
Market analyst Rekt Capital noted that Bitcoin has seen an excessive pullback. “Bitcoin is on the verge of a ‘quick re-examination,'” he said.
So far, Bitcoin has entered the red zone (on the chart) with a pullback, and this pullback has continued to the bottom of this range. Technically, bitcoin may be in a process of rapid retesting.
If Bitcoin fails to return to $ 55,000, traders predict a sharp fall to the $ 46,700 support area.
When the price of Bitcoin began to fall, the rate of capital supply in futures markets in large exchanges was above 0.1 percent.
This rate indicates that a large part of the market was buying (long) and this issue saturated the market.
Bybt data show that as the market saturated, 194,541 traders were liquidated in the past 24 hours, losing $ 1.83 billion in assets. This amount has been unprecedented since February 21 (March 23).
Eventually, this pushed the price of Bitcoin below $ 57,000. Michael van de Pope cited the area as a key support, saying:
Bitcoin is a great struggle to maintain this area. The upward trend must continue, otherwise we will see the price return to the phase of transverse fluctuations.
Stable coin input stream
Prior to the fall in the price of bitcoin, data from CryptoQuant showed that a large volume of deposits had been made in the Gemini exchange.
It is worth noting that Gemini, along with Coin Bass, is one of the largest digital currency exchanges in the United States. Gemini is nicknamed the “Whale Exchange”.
“Young Crypto Quantum CEO Ki Young Ju said:
These 18,000 bitcoins that have been deposited are legal; Because as a result of a transaction, it has been transferred from the user’s wallet to the hot wallet of Gemini Exchange. The average inflow of capital to all exchanges has been accompanied by a sharp increase. If you have a shopping position (long), do not use the above levers.
In addition to the selling pressure of whales, the widespread impact of capital inflows to exchanges in shaping the recent trend is a sign of decline.
Joe went on to say that the recent jump in the price of bitcoin has been accelerated by the holdings of stable coins, and that institutional investors have played little role in this process. He added:
The price difference of the premium coin was always very high when the price of Bitcoin broke $ 20,000, $ 30,000, $ 40,000 and $ 50,000. The driving force behind this $ 60,000 trend is not American institutional investors. This trend has been created by the Stables.