on the crypto
Because Bitcoin traders think that digital currency may continue to lose value
Bitcoin's price has fallen nearly 30 percent since it hit the $ 10.600 mark in October. At this point, technical analysts have begun to consider returning to more real figures like $ 6.000.
On October 21st, due to a cascade of short liquidations on major margin trading platforms such as BitMEX, the price of Bitcoin rose above the key psychological level of $ 10.000.
Since then, Bitcoin has struggled to regain momentum, falling below an important support level of $ 7.700 in the past two days and becoming vulnerable to a larger correction in the range from $ 6.300 to $ 6.800.
Is a drop below $ 7.000 for Bitcoin likely at this point?
When the volume in the cryptocurrency exchange market fails to rebound on the selling pressure it continues to rise, it leaves Bitcoin with a greater risk of a short-term slump.
During the past week, the bulls have not been able to respond to the growing selling pressure, despite the growing number of shorts on margin trading platforms.
Historically, when the funding rate on BitMEX becomes negative, it indicates that there are more short-term contracts open on the stock exchange than long-term, which has led to frequent stops, causing an increase in the hunting price for liquidations of short-term contracts.
However, probably due to the low volume and the intensity of the selling pressure, the price of Bitcoin did not show any substantial short-term peaks on the upside to test the key resistance levels.
In the near future, as stated by major technical analysts, Bitcoin's inability to maintain a crucial level at $ 7.700 will likely cause a decline to more reasonable figures such as $ 6.000, with traders considering $ 6.800 as an imminent target.
As a factor in the decline and potential decline in Bitcoin, analysts indicate that BTC will drop below the mining breakeven price said to be above $ 8.000 and the significant drop in overall market volume.
The Altcoin market has greater success
After the Bitcoin price crash almost overnight, Ethereum's price dropped from $ 180 to $ 155, about 14 percent against the US dollar.
Both against Bitcoin and the US dollar, most alternative cryptocurrencies such as XRP, ETH and Bitcoin Cash have performed poorly in recent days.
At this point it is easy to predict that the first digital currency will continue to see a drop in price in the coming months and reach minimum levels that have not been seen for some time now. However, it is important to remember that with cryptocurrency trading, it is possible to earn even when the markets move downwards, so why not take advantage of these interesting projections?