The bitcoin rate experienced a sharp decline on Sunday evening, in the process reaching $ 35,000, and on some exchanges dropping below it.
Bitcoin surpassed $ 40,000 for the first time on Friday, where its rally to new highs through all psychologically and technically significant levels temporarily stalled. The decline from the peak was more than $ 6,000, or 17%. Traders are ironic about the fact that Bitcoin has fallen to levels that have not been seen for four days.
“This upward movement was so incredible that we all lost touch with reality,” says analyst DonAlt.
Buyers took over at about $ 35,000, after which the rate bounced above $ 38,000. A number of market participants welcome this move as an opportunity to build up their positions.
“Normal decline, finally,” writes entrepreneur Alistair Milne.
“Bitcoin rebound 11% or $ 3,888 in 30 minutes is a new paradigm. If I were told that a $ 3,800 bounce is the price of 1 BTC in March 2020, I would laugh, ”the analyst says.
As trader Edward Morra notes, for the first time in a long time, Bitcoin tested the level of the monthly volume weighted average price (VWAP). VWAP is used by technical analysts to identify market trends and to calculate a volume-weighted average price. The indicator is similar to a moving average, since when the price is above it, they talk about an uptrend, and if it falls below it, there is a risk of a bearish trend change. In this case, Bitcoin has successfully pushed off the monthly VWAP.
Despite the fact that trading in the cryptocurrency market, in contrast to the stock market, is conducted around the clock, sessions are also divided into European and Asian, depending on the time of day in a particular part of the world. Bitcoin’s nightly declines are often associated with the latter.
“The situation is developing faster than I expected. Asians must have woken up earlier than usual, ”adds Morra.
“Bitcoin is approaching its first anchor as the area was resistance during an earlier rally,” writes analyst Michael van de Poppe. “Another anchor point: $ 33,000 – 33,500. Then $ 29,000 – 29,500.”
“A couple of applications, which I completely forgot about, have been filled, and now I’m scared,” writes trader Loma. – I left because initially I had no intention of entering this position. It was intended for an upward movement. I’m not going to stay in the market longer than I should. ”
Some other analysts now also expect a rise above $ 39,000 or a fall below $ 37,000 to determine the further trend.
“The area between $ 37,000 and $ 39,000 is unacceptable for trading. I’d better keep this capital, ”writes one of them.
It is curious that the leading traders of the Binance exchange did not expect today’s movement and held mostly long positions at a ratio of 59%. Against this background, the volume of liquidations of positions in the market as a whole over the past four hours amounted to $ 800 million.
The CEO of the analytical firm CryptoQuant Ki Yong Joo previously noted that the index of positions of miners may be at a local maximum, indicating sales on their part.
Concurrently with recent moves, some exchanges are experiencing outages. So, perpetual swaps were not available on OKEx, and Coinbase, for unknown reasons, switched the Ethereum Classic market to the “only for placing limit orders” mode. The cryptocurrency rate there significantly exceeds the performance of other exchanges: $ 13 versus $ 9.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
