Bitcoin slumped as low as $58500 with a pullback of close to 10% in the last 24 hours. It remains unclear what was the driving force behind the decline in Bitcoin.
In the midst of this decline, statements from the Twitter CFO, Biden’s approval of the law containing provisions for cryptocurrencies and new warnings from China have further reduced risk appetite. However, we consider that these news did not have much impact on the market because they were previously priced and sold news.
At this point, when we look at the liquidation figures, we see that a serious long position cleaning has been made. Nearly $1 billion of long positions were liquidated in the last 24 hours, while 218,000 traders were liquidated and pushed out of the game.
When we look at the liquidation rates, we see that it is the biggest liquidation since September. After this liquidation in September, there was a further regression in prices, and then there was a serious increase. In order for Bitcoin not to lose its bullish momentum and maintain the risk appetite of investors, it will need to show that this is a clean-up operation and break above $63100 (daily ma20) as soon as possible.
When we look technically, we see that we get support from the 50-day average.
In our analysis dated 17.10, we stated that our price range in Bitcoin would be between $68500 and $58,000, and we stated that these levels could be retested. Therefore, we consider that there is no cause for concern in terms of price. The on-chain data shows that the price in Bitcoin is still not overheating and thus the peak has not been seen.
*Not Investment Advice.