On the 15th, the price of bitcoin (BTC) plummeted by nearly 6% in less than four hours. March opened a new weekly candle.

Three factors have contributed to bitcoin’s slowing momentum, namely new weekly openings, high funding rates and stable inflows, which are driving market growth.

New weekly plug and reset

When a new weekly candle opens, bitcoin typically experiences more volatility, as Monday’s trend can dictate bitcoin’s performance for the rest of the week.

1 day chart BTC/USD with important levels. Source: Tradingview.com, Rekt Capital

Bitcoin has experienced an outrageous drop in the past few hours, as noted by pseudo-trader Rekt Capital. As a result, the trader said BTC could be in the midst of a volatile pullback. The trader said:

BTC fell back towards the red zone and is even overbought below it – the day is still young, so price may yet make a decision on this red zone and turn it into support Technically, $BTC is in a volatile retest.

If bitcoin fails to recover from the $55,000 area, the trader warned that a sharp correction towards the $46,700 support level is possible.

The futures market was very overheated

When the price of bitcoin began to fall, the coverage ratio on the BTC futures market hovered above 0.1% on all major exchanges.

This suggests that the vast majority of the market was either craving bitcoins or buying them, causing the exchanges to be overcrowded.

Liquidate BTC long/short. Source: Bybt.com.

According to Bybt.com, 194,541 traders liquidated in the past 24 hours for a total of about $1.83 billion, the highest figure since the 21st century. February. The futures market experienced a cascading sell-off when the market became extremely overheated.

This wave of liquidation eventually pushed bitcoin below $57,000, which Cointelegraph market analyst Michael van de Poppe called a key support level. He said:

Bitcoin is just holding steady at this critical level. Further rebound is necessary, otherwise the price will fall back into the range.

Large changeable deposits and stable tributaries

Before the drop, in-chain analytics platform CryptoQuant reported large deposits of BTC in Gemini.

Gemini is one of the largest bitcoin exchanges in the United States, along with Coinbase, and is often referred to as an exchange whale.

Bitcoin all forex posts. Source: CryptoQuant

Ki Young Joo, CEO of CryptoQuant, said:

This $18k BTC deposit is legitimate because it is a transaction between users’ wallets and Gemini Hot Wallet. Thanks to this deposit, the average inflow of all currencies increases rapidly. Don’t overdo it if you’re in a long position.

In addition to the whales’ selling pressure, the recent bitcoin rally, led by the influx of stablecoins into the stock market, has been another bearish sign.

Ki pointed out that the rally was catalyzed by outflows of capital held in the stables, not institutions in the United States:

The coin-based premium index was always much higher when $BTC prices broke at 20k, 30k, 40k and 50k. It was clearly negative when the price went above 60k. This 60-pound bull is not an American institution; he comes from the barn.

Related Tags:

Feedback,bit coin price,bitcoin stock price,how much are bitcoins worth,bitcoin news today

Relevant news