Panicked selling is crushing the entire cryptocurrency market, sending Bitcoin to $ 30,000 for the first time since February, but data shows that Bitcoin whales bought the drop.
Data from Cointelegraph and Trading View Markets shows that the initial price drop that pushed Bitcoin below the $ 43,000 support level on May 18 accelerated the night trading session as a $ 110 billion trading volume drove the price down to $ 30,000.
The market downturn has led to other disruptions and delays across a few major cryptocurrency exchanges, and prices for the vast majority of cryptocurrencies have plummeted along with the price of Bitcoin, with Ethereum (ETH) falling briefly to $ 1,900 and Dogecoin (DOGE) falling to 0.236. Dollars.
Selling pushes traders to use excessive leverage
As with any major downturn in the cryptocurrency market, derivatives and leveraged traders have been hit hard by the rapid $ 8,000 Bitcoin price drop that resulted in 10,525 Bitcoin liquidation in one hour at the height of market pressure.
While leveraged traders were eliminated, some high-end traders and larger entities with money took advantage of this opportunity to buy the dip and put the newly acquired Bitcoins instantly in personal wallets, as evidenced by the influx of 16,895 Bitcoins within 10 minutes earlier on 19. May.
As for what to expect next for Bitcoin, some evidence has been provided by the team at Wellmap, which identified $ 33,000 as a major new support level for Bitcoin, with the former support at $ 46,000 now becoming a major resistance level if the price tried to rebound higher.
Additional analysis from the team also highlighted the support levels at $ 37,400 and $ 34,200 and indicated that if the price continues to decline, it is important for the support price to reach $ 29,000 or the price may reach $ 19,000.
While a price drop below $ 29,000 might sound daunting to some, Willmap closed its analysis instead by stating:
Comments
Post a Comment