Why Is Bitcoin Price Falling Today?
As Bitcoin tries to maintain its bullish momentum, the cryptocurrency market is witnessing a significant sell-off with more than 40 million long positions being liquidated.
This massive sell-off has increased concern among investors and analysts and led to a deeper dive into the reasons for Bitcoin’s current price decline. At the time of publication, BTC’s price was trading at $64,888, down 2.38% from its intraday high.
BTC/USD 1-day price chart
The recent sell-off comes amid persistent resistance that Bitcoin has faced despite attempts to consolidate above the $66,000 level. Additionally, technical indicators such as TD Sequential gave warning signals indicating a possible change in the course of Bitcoin price.
However, analysts warn that if BTC fails to hold above its critical $65,000 support level, it could see further selling pressure and facilitate a deeper decline in price.
Bitcoin Funding Rate Turned Negative After Halving
In addition to the downward pressure on BTC funding rate It turns negative for the first time this year just before the last halving event. A negative funding ratio indicates that market sentiment has shifted towards bearishness if short positions outweigh long positions.
This event is important as it shows the impact of the halving event on Bitcoin’s network dynamics and investor psychology. The Bitcoin block reward halving has begun to impact market dynamics, as derivatives data shows, indicating a turn towards bearish positions.
Despite Bitcoin’s current decline, there are some indications that the market is trending upward again. After two days of negative funding rates, Bitcoin experienced a jump in funding rate following the halving event. Additionally, the increase in total open positions indicates an increasing bullish sentiment among market players.
The recovery of the BTC Long/Short Ratio also confirms the optimistic bias; This signals that investors are now bullish on Bitcoin rather than bearish.
Additionally, more recent research suggests that the recent Bitcoin halving has had a more positive impact on the Bitcoin price than the previous halving, indicating that the uptrend will potentially extend in the long term.
Crypto Options Expiry Increases Market Volatility
While BTC is struggling with selling pressure and negative indicators, crypto options It adds a new layer of volatility to the market. More than $9.4 billion worth of crypto options, including Bitcoin and Ethereum, are expected to expire, potentially increasing price volatility in the short term.
Expiration date is a factor closely watched by market participants as it can provide additional direction to BTC prices. Expiration of options contracts often results in an increase in trading activity and increased volatility as investors reposition their assets.
Moreover, Arthur Hayes He weighed in on the current market trend, expressing confidence in Bitcoin’s long-term trajectory. Hayes highlights Bitcoin’s role as the “hardest money ever created,” citing ongoing fiat inflation as a catalyst for Bitcoin’s continued growth. He predicts a bullish outlook for Bitcoin and encourages investors to take advantage of the opportunities presented by market declines.
Also Read: Peter Schiff Predicts #Bitcoin (BTC) $60K Support Will Not Be Held
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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