Bitcoin Faces Selling Pressure, Predicts Turning Point at $61.9K-$59.7K
The Essentials in Brief
Despite high expectations and a recent price rally, Bitcoin is currently experiencing increased selling pressure. The reasons for this are varied, ranging from the liquidation of long positions to politically and economically motivated speculations. In this post, we examine the main factors behind this phenomenon and provide an outlook on the possible future development.
Why is Selling Pressure on Bitcoin Increasing?
After a euphoric rise last week, Bitcoin has experienced a decline influenced by various negative news. A significant factor is the liquidation of long positions, which can be seen as a worrying sign for the leading cryptocurrency. The price of Bitcoin has fallen by almost 6% to $66,042 USD, which could have prompted short-term traders to take their profits, thereby contributing to the decline.
Influence of External Factors
Last week was marked by politically charged speculations, but this week the hype seems to have subsided. Market participants’ caution has increased, particularly due to the upcoming FOMC data and the FED meeting. Uncertainties surrounding economic announcements significantly influence investment decisions, prompting many traders to exit their positions and wait for clearer signals.
Another factor that has increased selling pressure is new data from Mt. Gox, showing that 47,229 BTC were transferred to anonymous wallets in the last 24 hours. This has raised fears that a sale of these Bitcoin quantities could exert significant selling pressure on the market.
Technical Analysis and Market Reaction
Technical analysis using the Fibonacci retracement tool suggests that the next turning point for Bitcoin could be between $61,921 USD and $59,693 USD, should selling pressure continue. In addition, the long positions, particularly in two large zones, have contributed to Bitcoin’s price quickly returning, which could have provided short-term sellers with more liquidity for their short positions.
Our Assessment
Although the Bitcoin price is currently under pressure, it is important to closely monitor market conditions and the underlying factors. The dynamics of the cryptocurrency market can change quickly, and long-term trends are often difficult to predict. However, the current situation shows how important it is to incorporate both technical and fundamental analyses into the investment strategy in order to make informed decisions.
Sources: AMBCrypto, Lookonchain, CryptoQuant, Hyblock Capital
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