The Bitcoin (BTC) price fell below $ 10,000 on major exchanges again on September 5, marking two consecutive days of testing the crucial level. Other major cryptocurrencies, including Ethereum Ether (ETH), fell by about 10%.

Three factors probably contributed to the sudden fall in bitcoin, including miners, a strong dollar and whale mining.

Did the whales make a profit?
When Bitcoin’s price suddenly fell 5% to $ 9,975 on Binance, the BitMEX settlement was less than $ 40 million. Typically, when there is a huge price movement, it results in the exclusion of over $ 100 million from futures contracts.

Futures data indicates that the sales pressure came from the spot market. While that is possible, there is a small chance that retail investors will start dumping heavily over $ 10,500.

The whales are likely to earn $ 10,500, which is a multi-year resistance level for Bitcoin.

But the whales have been making money since Bitcoin made $ 12,000. As Cointelegraph previously reported, the whale was sold for $ 12,000 after bitcoin ‘HODLing’ for over two years.

Probably selling some miners
For a week, the data provider CryptoQuant has claimed that mining pools are profitable. Ki Yong Joo, CEO of the company, said:

“Miners regularly send a certain amount of BTC to stock exchanges, so they already have a large amount of BTC on the stock exchange. When they decide to sell, it turns out that they transfer a relatively large amount of bitcoins to other wallets, and some of them they want to go to stock exchanges. ”

Gradual sale of BTC by miners since mid-August may put significant pressure on the sale of bitcoins. However, Poolin VP Alejandro de la Torre stressed that it is difficult to accurately track the flow of miners. He is not:

“I can assure you that CryptoQuant does not know which wallets Poolin owns. Maybe a handful of (large) miners are tracking them … and there’s still a lot of speculation. ”

Strong dollar weakness, ETH
A common theme in the last two weeks – with the consolidation of Bitcoin – has been the strengthening of the US dollar. The US dollar begins to show signs of recovery after a four-month decline as the euro begins to fall.

Since the value of both bitcoin and gold is mostly priced in US dollars, and many bitcoin traders are in the US, the increased dollar value has weakened bitcoin’s momentum.

Furthermore, a significant fall in the ETH price may have exacerbated the downturn. On September 5, ETH fell below $ 360 to below $ 340. A trader known as the Byzantine general said that if ETH falls below $ 360, the next potential target will be $ 290. He said:

“I learned that it was bullish at right angles. “It is very typical after an upward trend and a fairly neutral pattern: 55% of the time it breaks down. But heck 360 is better than holding on, otherwise we jump straight to 290, maybe 250. ”

Ether has been a leader in Bitcoin’s rally since the beginning of April, and weakness in ETH may have exacerbated BTC’s fall in the short term. But since then, Bitcoin has recovered and hit the $ 10,200 mark. The trend shows a decent purchase over $ 10,000, which could lead to longer consolidation.

Michael Van de Pope, a full-time trader at the Amsterdam Stock Exchange, said the move could be optimistic for Bitcoin, noting:

Finally, liquidity is at its lowest. A $ 10,000 recovery means volatility in support / resistance and very potential opportunity when we seek liquidity over high levels. This should equate to a payback of $ 10,750-10,900, and most markets will track 25-40%. “

Source: CoinTelegraph

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