Bitcoin Dips Below $ 45,000, Experiencing Deepest Pullback In A Week Since March 2020

Bitcoin continued to fall this morning and hit below $ 45,000, losing more than 15% of its value in a day. Yesterday, the cryptocurrency climbed to $ 52,000, but today on most major exchanges it has set a new local minimum slightly above $ 44,000. This is the lowest level at which Bitcoin was quoted in the last two weeks.

The decline in bitcoin has occurred since the beginning of the week, when its price renewed all-time highs above $ 58,000. According to Bybt, as a result, open interest in the bitcoin futures market dropped sharply from $ 19.1 billion to $ 15.1 billion over five trading sessions. the cryptocurrency will not win back some of the positions, the current week with a decrease of 22% will become the largest in this parameter after the March collapse, when the price fell by 33%. Over the past 11 months, Bitcoin has had just two weeks with a double-digit decline and eight weeks with a decline in general.

One of the factors for today’s movements could be the situation in the broader financial markets, which also rushed down over the past day. At the same time, the yield on 10-year US government bonds on Thursday rose to its maximum for the year 1.61%, pushing investors to abandon risky assets. In addition, Bitcoin options expired today at 11:00 Moscow time, which could have prompted large players to increase pressure on the market to protect their positions.

“Watching the $ 44,000 level. Tested once, but a break below is likely to send the price back to $ 40,000,” said analyst Josh Rager. “And if the price drops to $ 40,000, you can count on a wick in the $ 38,000 range. From there it can bounce, but it will happen level by level and day by day.”

Rager’s stated target of $ 40,000 coincides with the 50-day moving average. This line supported the growth of bitcoin throughout 2020, and the falls below it were short-lived. Analyst Willie Wu’s lows model also suggests strong support around $ 39,000.

Why do people assume that big money like Sailor / Elon are trading experts who will calculate the exact low? – writes analyst Altcoin Psycho. “It worries me how many people think that these purchases mean a decline is impossible. Have we forgotten how many funds were at a loss in 2017? These are long-term players with plans for five or more years. “

Altcoins are showing a comparable decline. Ethereum, for example, is trading below $ 1,500 with a 10% loss. Market capitalization over the past week decreased by $ 380 billion to $ 1.4 trillion.

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