The Bitcoin (BTC) price suddenly fell by about 6% in less than four hours with the opening of a new weekly light on March 15.
Three factors contributed to the weakening of Bitcoin’s momentum, namely the opening of a new week, high financing rates and stable currency flows that initially pushed the market up.
New weekly candlestick and downward trend
When you open a new weekly light, Bitcoin usually experiences significant volatility because Monday’s trend may determine how Bitcoin will perform for the rest of the week.
Bitcoin has plunged too much in recent hours, as a trader alias “Rekt Capital” notes. As a result, according to one trader, Bitcoin may be in the process of an “intermittent reload.” The merchant said:
“BTC fell back into the red zone and even went beyond its limits – at the moment it is still young, so the price can still settle for this red zone and make it supportive. Technically, BTC is testing volatility again. ”
If Bitcoin fails to bounce off the $ 55,000 range, the trader warned of the possibility of a sharp correction to the $ 46,700 support level.
The futures market was overheated
As the bitcoin price began to fall, the BTC futures market’s funding rate on major exchanges fluctuated above 0.1%.
This indicates that the vast majority of the market either wanted or bought bitcoins, which made this business crowded.
According to Bybt.com, 194,541 traders have liquidated a total of $ 1.83 billion in the last 24 hours, the highest level since February 21. The futures market witnessed successive liquidations when the market was very hot.
This liquidation wave eventually drove Bitcoin below $ 57,000, which Cointelegraph Markets analyst Michael Van de Pope identified as a major level of support. He said:
“Bitcoin has barely maintained this critical level here. Continued bullish growth is needed, otherwise the price will fall back in this area. ”
Large foreign exchange deposits and stable foreign exchange flows
Before the downturn, the data analysis platform CryptoQuant showed large chain BTC deposits on Gemini.
Gemini is the leading bitcoin exchange in the United States alongside Coinbase and is often referred to as “whale exchange”.
Ki Yong Joo, CEO of CryptoQuant, said:
This $ 18,000 (BTC) deposit is legal because it was a transaction between the user’s deposit wallet and the Gemini hot wallet. The average current of all stock exchanges has increased due to this deposit. Do not overdo it if you are tall. ”
Apart from the pressure from the whales, the recent rally in bitcoin, driven by stable currency flows on stock exchanges, has become another bearish sign.
Key pointed out that the increase was driven by a stable currency margin, not US institutions.
“Coinbase Premium has always been significantly higher when the price of BTC was above $ 20 30,000 40 50,000. And this was significantly negative when the price exceeded 60K. This 60,000 bull meeting was not caused by American institutions, it came out.