The price of Bitcoin corrected after reaching the peak of $ 40,500 and fell below $ 37,000. Recent price fluctuations have led analysts to warn of sellers’ activity, resulting in further price declines.
to the Report Bitcoin Telegraph, the price of Bitcoin crossed the $ 40,000 mark yesterday, and this event caused the hopes to return to the market to a great extent. This was the first time in the last six weeks that Bitcoin had overcome this psychological resistance.
The price of Bitcoin peaked at $ 40,581 in the immediate markets, causing the price to reach $ 48,110 in the futures market. During the jump, something like a $ 500 million short sale futures contract (shorts) was liquidated.
Market data show that after reaching $ 40,581, the price of Bitcoin corrected and fell to $ 37,500. It should not be forgotten that buyers are looking to turn $ 40,000 into a support area again.
Although the recent rise has prompted some traders to report a reversal and a continuation of the uptrend in the market, data within the chain and the funding rate of futures contracts without maturity show that this cannot be said with certainty.
Spark the uptrend again?
According to Elie Le Rest, a senior executive at ExoAlpha Investment Management, the rumored rejection of Amazon’s acceptance of bitcoin has the potential to have a similar effect to People News and its entry into the digital currency market. Lorst says that if Amazon’s news comes true, we can expect the market to rise in the second half of 2021. In another part of his speech, Lorst said:
As the price of Bitcoin crossed $ 35,000 two days ago, more than $ 1 billion in short-term futures contracts were liquidated in the past 24 hours. Traders who have been waiting for the direction of the Bitcoin trend since May can stabilize the current situation during the current week, taking into account the current fluctuations.
To confirm this trend direction, Bitcoin must break its $ 30,000 to $ 40,000 range. This digital currency has been fluctuating for 2 months during this period. A stabilization above $ 40,000 will signal the end of the downtrend and the continuation of the uptrend.
Lorst believes that if the bitcoin price maintains its current uptrend, one can expect the accumulation model to return to supply. According to this model, the price will reach $ 100,000 by the end of the year.
Intra-chain data is not that upward
Along with warnings of oversupply in the market, Glasnod data show that downward threats in the market remain strong.
According to GlasNow, the funding rate for non-performing futures contracts remains negative, indicating that most traders have a downward trend in the market. In the Glassnode report we read:
This criterion helps us to understand that Monday’s rally was largely related to the sudden and rapid jump in prices. In this case, and with a jump of about 30 percent, the funding rate became more negative than before.
It is worth noting that in fast jumps, sellers buy to compensate for their losses, and this increases the speed of the jump.
In his report, Glasnod states that intra-chain activities also take place in spite of current and future market fluctuations, and the volume of intra-chain transactions and activities is extremely small.
In general, how intra-chain trading volume responds to recent Bitcoin price movements will provide a better insight into the market; However, Glasnod believes that it remains to be seen whether trading volume will increase in response to recent price fluctuations.
Status of Altcoins
The revival of the bitcoin price and the crossing of $ 40,000 caused many altcoins to grow as well. The price of Ethereum with 11 and the price of Dogecoin with 7% rise, made both of them among the most successful instruments on the market in recent days. The Ethereum is trading in the $ 2,200 range and the Dogecoin is trading in the $ 0.2 range.
Strike (STRK), Venus (XVS) and Wei China recorded the best performance in the market with 64, 55 and 20% growth, respectively. It should not be forgotten that a large part of the market is currently struggling with reform.
Digital currencies currently have a market value of $ 1.46 trillion, with Bitcoin having the largest share at 47.4%.