Bitcoin (BTC) traders went through a tough test of the decision on January 11 when the largest cryptocurrency approached $ 30,000.
BTC costs $ 30,250.
Data from the Cointelegraph Markets, Coin360 and TradingView markets showed that the bitcoin / dollar pair continued its downtrend after the Wall Street open on Monday, resulting in a 23% loss for 24 hours.
The move extends to the market recovery that began over the weekend after Bitcoin hit a permanent high of $ 42,000.
The slow decline accelerated on Sunday as selling pressure continued on Monday and traders trying to “buy the dip” were unable to make their lives easier.
While traders are not worried about the normal behavior of Bitcoin, in recent days and weeks speculation has begun to favor this kind of reversal.
For Michael Van de Pope, analyst at Cointelegraph Markets, this is a useful reference for determining the golden mean in Bitcoin’s 21-week moving average (MA). Currently at $ 18,000, the index will rise to match previous price increases, while the price itself may continue to fall and will meet in the middle of the resulting area on Monday, forming a bottom.
“If you ask me about the #Bitcoin scenario, I think we will see something like this, where the 21-week moving average also plays a support role,” he tweeted Monday.
“Altcoins work really well from the bottom up.”
The highlight of the fall of mining
As Cointelegraph reports, the demonstration of over $ 40,000 may have pushed miners to take a break from making a profit, with data showing sales hitting their highest level since July 2019. In addition, concerns about market lending after such rapid growth. …
“Long positions have gotten too large and sound risk management required little to do for long-term contract holders, including miners,” Chad Stingglas, chief trading officer at CrossTower, told Cointelegraph in an exclusive comment.
“The fact that this action took place on a weekend when traditional asset players were not working, and when potential new cash flows from new investors did not reach institutional players’ accounts, it resulted in an imbalanced order flow, this time dominant sellers.”
Steinglass added that the status quo could naturally shift in favor of the bulls when the trading week begins.
“It remains to be seen whether the start of US business week and the opening of traditional bank hours will result in sufficient support for inflows to balance or beat sales interest,” he concluded.
Jay Hirsch, CEO of the eToro US trading platform, agreed.
He told Cointelegraph: “Bitcoin is traded primarily on profit. Given that we are still well above historic highs ahead of the last rally in the rally, it remains to be seen how much further we might fall.
“While we don’t expect it, a drop below $ 20,000 could bode badly for the convicted institutions behind the Bitcoin distribution, as they have largely breached the $ 20,000 price level.”