Liquidations on cryptocurrencies – The price of Bitcoin has experienced downward volatility, and many operators have been liquidated. In total, the roughly 8% drop resulted in more than $300 million in liquidations. Most of the operators that were liquidated were long, and this shows a certain euphoria in the market.
The price of Bitcoin is moving above the psychological round number of $40,000, and the whales appear to be ready for the next bull market. Here is today’s newsletter!
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Bitcoin price falls by more than 1% in 24 hours
Since Sunday evening, the sellers have regained control of the price of Bitcoin. BTC blocked at the level of $44,000and the price fell close to $40,000. The course displays a drop of more than 1% in 24 hours :
Bitcoin Performance
| Pair | 1H | 24H | 7D | 1M | 3M | 6M |
|---|---|---|---|---|---|---|
| BTC/ETH | 0.31% | -0.39% | -0.25% | 3.61% | 14.81% | 23.88% |
| BTC/USDT | 0.34% | -1.19% | -0.43% | 12.64% | 61.03% | 66.55% |
| BTC/USD | 0.36% | -1.19% | -0.35% | 12.65% | 61.02% | 66.68% |
Bitcoin outperforms Ethereum over the last month of 3.61% while the price of BTC in USD increased by 12.65%.
Bitcoin performance against different pairs. Source: Coincheckup
Despite this drop, the price remains up 13% in one monthand more than 60% in three months. The BTC/ETH pair stagnates in a weekand it climbs almost 4% in one month. BTC continues to be strong against Ethereum.
The whales are distributing, has the new upward cycle already started?
Whales are entities with more than 1,000 BTC in wallet. These wallets have the capacity toinfluence the cryptocurrency marketthis is why we look at their behavior. Here, we will focus on portfolios with more than 10,000 BTC :
While the market was in bull market in 2021whales with more than 10,000 BTC in their portfolio took the opportunity to distribute. They took advantage of theeuphoria on the market cryptocurrencies to sell. Then, when BTC peaked, they changed behavior. In fact, the whales have started to accumulate BTC from 2022. It would seem that the accumulation phase is completed, and they are ready for a new bull market. Will we be treated to a significant fall like in 2019 before going on a bull run? Or are we already in a bull market?
Bitcoin price must retake $42,000 as support
The sellers managed to break the support present at $42,000but buyers defend the last low at $41,160. In fact, the price rebounded to the level of support at $40,500 :
BTC must resume level at $42,000 to be able to return to the level of resistance at $44,000. If the $42,000 resist, the price could fall again on the support at $40,500, and it could end up giving way. In this case, BTC could lose the $40,000 and return to the next support located at $37,500. The RSI displays a bearish dynamicsTHE sellers have their hands on the mometum short term.
The whales are distributing, and they have been doing this behavior since the beginning of the year. It appears they have stocked up during the dizzying fall of 2022, and are ready for the bull run. The whales could continue to distribute as the price climbs. For its part, BTC rebounded to the support level at $40,500, but it is necessary to get rid of the resistance at $42,000 to be able to find the resistance at $44,000. Are institutional actors experiencing FOMO? CoinShares records inflows of $2 billion.
Bitcoin news that matters:
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