News
Why is Bitcoin price below $65,000 today?
As Bitcoin struggles to maintain its upward momentum, the cryptocurrency market is witnessing a significant sell-off, with over $40 million. long positions be cleared in just an hour. A total of over 208 million cryptocurrencies have been liquidated in the last 24 hours.
This massive sell-off has increased anxiety among investors and analysts, leading to a deeper look into the reasons for Bitcoin’s current price decline. At the time of writing, BTC price was trading at $64,427, down more than 0.45% from the intraday high of $65,083. BTC’s market capitalization fell 0.42% to $1,268,251,647,682, while 24-hour trading volume increased 24% to $33,093,026,191. This increase in trading volume suggests that traders are taking advantage of the dip to buy.
Bitcoin/USD Price chart for 1 day
The recent sell-off comes amid persistent resistance faced by Bitcoin, despite its attempts to consolidate above the $66,000 mark. Furthermore, technical indicators such as the TD Sequential have raised warning signals suggesting a possible change in Bitcoin’s price trajectory.
However, analysts warn that if BTC fails to hold above the critical $65,000 support level, which it has, then it could come under further selling pressure and could facilitate a deeper decline in price.
Bitcoin funding rate turns negative after halving
Adding to the downward pressure on BTC is the financing rate turning negative for the first time this year, just before the recent halving. The negative financing rate indicates that market sentiment has changed to a bearish mood as short positions outweigh long positions.
This event is essential as it portrays the effect of halving event on Bitcoin network dynamics and investor psychology. The halving of the Bitcoin block reward has already started to influence market dynamics, as indicated by derivatives data, which indicates a turn towards bearish positions.
Regardless of Bitcoin’s current slowdown, there are some indicators that the market is looking higher again. After two days of negative funding rates, Bitcoin saw a rebound in its funding rate following the halving event. Furthermore, aggregate open interest increased, suggesting an increase in bullish sentiment among market participants.
The rebound in BTC’s Long/Short ratio also confirms the optimistic trend, which signals that investors are now more bullish than bearish on Bitcoin.
Furthermore, more recent studies suggest that the latest Bitcoin halving had a more positive impact on the price of Bitcoin than the previous halving, which indicates a potential extension of the long-term uptrend.
Crypto options expiration increases market volatility
As BTC grapples with selling pressure and negative indicators, the impending expiration of cryptographic options it adds another level of volatility to the market. More than $9.4 billion worth of crypto options, including Bitcoin and Ethereum, are scheduled to expire, potentially exacerbating short-term price fluctuations.
The expiration date is a factor closely monitored by market participants, as it could give further direction to BTC prices. The expiration of options contracts typically results in a surge in trading activity and an intensification of volatility as investors reposition their holdings.
Furthermore, Arthur Hayes weighed in on the current market trend, expressing confidence in Bitcoin’s long-term trajectory. Hayes highlights Bitcoin’s role as “the strongest currency ever created,” citing ongoing fiat inflation as the catalyst for Bitcoin’s continued growth. He predicts a bullish outlook for Bitcoin, urging investors to take advantage of opportunities presented by market dips.
According to Coinglass, open interest in CME Bitcoin futures fell 4% over the past 24 hours, adding pressure to the selling seen in Bitcoin, triggering a sell-off in the cryptocurrency market.
Read also: Peter Schiff Predicts #Bitcoin (BTC)’s $60,000 Support Will Not Hold