Sub $30K Bitcoin price sell-off would require panic ‘to a large degree’

0
152

The order books, which are essentially a list of orders executed by the merchant to demonstrate the buyer and seller’s interest, show strong buyer interest in the $30,000 region on the major exchanges Coinbase and Binance.

There are 5,000 Bitcoins (BTC) ready to buy at $30,000 and another 7,000 Bitcoins at $28,000 on Binance.

The sale may not be over yet, but bitcoin buyers can take comfort in knowing that book orders in the $28,500-$30,000 range have been placed. Therefore, falling prices due to Russian military action may provide a respite.

Binance order book. Source: ChimpZoo / Twitter
According to Statista, Binance is one of the largest exchanges in the world and consistently has the highest 24-hour spot trading volume.

For Coinbase, it’s a similar story with much more straightforward numbers. There are about 3,500 BTC ready to buy at close to $30,000 and 4,500 BTC ready to be acquired with Bitcoin up to $28,000.

Glassnode reports that “Open interest rates just hit a six-month low of $1,780,397,103.63” on Sam Bankman-Peace, the FTX crypto exchange.

Open interest has decreased across all exchanges in recent weeks, which means that fewer traders are being “liquidated” and price swings are less likely.

BTC open interest rate on FTX. Source: glassnode
Settlements on Bybit and Binance Futures are showing minimal open interest. Essentially, these exchanges will not “exempt” us from the current downward price movement and leverage positions will diminish.

Related: Trudeau withdraws emergency services as crypto-state grows

So, if pledged positions or “liquidation cascades” don’t drive the price down and there is a lot of interest in the $30,000 level, what will cause bitcoin to drop below $30,000?

instant sales. Sellers who didn’t sell bitcoin the last time it was under $33,000 should have a good reason to do so this time around.

Fear and Greed Index. Source: Twitter
With the Bitcoin Fear-Greed Index returning to its “extreme fear” territory and BTC dropping 12% overnight, investor confidence will be tested once again.

Source: CoinTelegraph

LEAVE A REPLY

Please enter your comment!
Please enter your name here