Reportedly, this price drop was triggered by the financial disaster skilled by China Evergrande, a leading Asian property developer. Due to this fact, the main liquidity problem witnessed affected the crypto market.
Earlier this month, BTC breached the psychological value of $50K and scaled to the $52,000 degree. However, the main cryptocurrency experienced a big pullback that prompted a $10K loss.
Furthermore, BTC funding flipped negative as over-leverage factors dominated.
This market trend triggered fear, doubt, and uncertainty (FUD), making crowd sentiment towards Bitcoin drop to historic lows.
Due to this fact, Bitcoin has been attempting to surge back to the $50K level in vain, given that it faces notable resistance between the $46,900 and $49,650 ranges. Market analyst Ali Martinez explained:
“Bitcoin should overcome this obstacle! The IOMAP reveals a major supply barrier ahead of BTC. Roughly 2M addresses are holding nearly 900K BTC between $46,900 and $49,650. Only a daily candlestick shut above this resistance wall would signal the resumption of the uptrend.”
In the meantime, the proportion of BTC provide held for greater than six months has been on the rise since July, on condition that it just lately exceeded 70%.
As an illustration, BTC whales have been on an accumulation spree regardless of the current market crash, given that they bought 50,000 BTC in simply four days.
Then again, open curiosity within the BTC market appears to be extremely correlated with price. As an illustration, Bitcoin’s perpetual swaps open curiosity recently topped the $16 billion mark, and on the time, the worth was hovering across the $50K mark.