Bitcoin investors with very high leverage in the derivatives market were the main drivers of Bitcoin’s massive sales on Monday (January 6th). Ethereum’s spot and futures markets, meanwhile, will attract the attention of many investors in the coming days. In this article from the website CoinDesk In short, we will have an overview of the situation of Bitcoin and Ethereum, after leaving behind the price peaks.
First, a brief look at the current market situation:
- Bitcoin (BTC) is trading at 5.31 percent at $ 31,400, down 5.7 percent over the past 24 hours, at 13:00 today.
- Bitcoin price range in the last 24 hours ($ 28,154 to $ 33,562)
- The price of Bitcoin is slightly lower than the 10-hour moving average and much lower than the 50-hour moving average (based on the hourly chart), which is a signal of a bearish decline for technical analysts.
The price of bitcoin faced a sudden sell-off on Monday and dropped sharply. At around 10:00 am Monday (13:30 Iran time), a large number of traders sold their bitcoins in spot exchanges, such as Coin Base; So that the trading volume at this time reached 6,000 bitcoins. Based on data 20KAs a result of this sudden wave of sales, the price of Bitcoin fell to $ 28,154.
Constatin Kogan, member of the company’s board of directors Wave Financial, Active in the field of digital currency investment, says about this:
Many people are now selling their assets and making a profit after the rapid rise in prices.
Analysts believe that after the price of Bitcoin crossed the $ 34,000 mark and reached a historic high of $ 34,366, many investors have decided to cash in on the profits from this price increase.
Jason Lau, Internal Manager of Okinawa Exchange (OKCoinSan Francisco-based, referring to the recent fall in the price of bitcoin, says:
Over the past week, with Bitcoin jumping to its all-time high, markets have reached new levels of resistance.
Traders near these levels of resistance received a return on their investment by selling assets, which caused subsequent trades to fluctuate around a horizontal range (neither bull nor bear). As a result, many futures traders entered the long position with heavy leverage.
During the unusual sale of Bitcoin on Monday, $ 10 million of investors’ assets in the BitMEX exchange derivatives market were liquidated. This figure means the dissolution of long positions with very heavy levers.
As you can see in the picture, a total of $ 135 million has been liquidated in selling positions (shorts), which is much more than the $ 34 million liquidated in buying positions. This shows the diminishing excitement of the market cows that lasted until Monday.
However, Jason Love believes that the buying pressure is still high enough to push the price of bitcoin up. “It simply came to our notice then.
Recent downturns are rapidly leading to massive acquisitions, indicating that there are still corporate acquisition offers from institutions that want to access bitcoin.
It is likely that in the coming days, part of the profit-related sales will be transferred from the Bitcoin market to the Ether market. The dollar price of ether has been accompanied by an explosive growth since January 3 (January 14) and has increased by 38.5% since the beginning of 2021. The price of ether has risen 7.5 percent since the beginning of the new year compared to a bitcoin.
Referring to Ether digital currency as one of the tools of coins (digital currencies after bitcoin), Love says:
Traders are converting their assets from bitcoins to coin tools in order to make more profit. This is quite evident given that Ether is more profitable than Bitcoin in the last 24 hours.
Konstantin Cogan considers this shift of capital from bitcoin to coin’s unstable. He believes:
Another interesting thing is the arrival of the peninsula season. Accordingly, demand is slowly shifting to other digital currencies. But I think this is a temporary process.
Ether’s futures market value exceeded $ 2.6 billion
Ether Digital Currency (ETH), the second largest digital currency (in terms of market volume), traded up $ 10.4 on Monday, hitting $ 1.034.
The volume of open contracts (OI) in the futures market crossed the $ 2.6 billion mark on Sunday and reached a new historical record. Binance Exchange with $ 632 million, OKEx Exchange with $ 421 million and Huobi Exchange with $ 382 million open-air futures contracts are ranked first to third in the futures market, respectively.
John Willock, CEO of Tritum Digital Asset Management, believes that traders’ interest in the futures market is growing; Because experienced market traders want to make a profit from higher ether prices. He stated in an interview with CoinDesk:
There is a strong natural tendency among long-term ether investors to sell ether at prices above the $ 1,000 threshold. As we can see, many orders around this price range are registered in exchange offices and are waiting to be completed.
He also believes that organizational interest in ether is growing day by day, because on the one hand it is expected that the exchange of global futures markets CME Launch futures contracts next month, and investors are looking for every opportunity to enter futures markets. Villak says:
Institutional investors can put little pressure on futures markets in the short term; Because many people are waiting for the price of this valuable asset to improve after the sudden and significant price increase.
Take a look at other markets
Other assets listed on Quindsk 20 also had a lucrative Monday. The big winners of the market until 21:00 world time (00:30 Tuesday morning Iran time) are:
- Stellar (XLM) + 20%
- Omisgo (OMG) 16.1 ٪ +
- Classic Ethereum (ETC) 9.6 ٪ +
And big market losers:
- الگورند (ALGO) 1.2. –
- Bitcoin Cash (BCH) 0.60 –
- LightCoin (LTC) 0.10% –