[ad_1]
The price of Bitcoin (BTC) suddenly dropped 3% in several hours on November 4th to $ 13,566, after briefly rising above $ 14,000.. Coincidentally, the US dollar, gold and stocks all collapsed together.
Analysts they point to the uncertainty surrounding the election as a catalyst for the sharp correction.
Because the markets fell after the rally during the vote count
When the mainstream media actively reported the vote count, the price of Bitcoin and its shares skyrocketed. But nevertheless, After the end of the vote count or the day, all risk assets went red, including S&P 500 futures.
This was stated by Tracy Alloway, a Bloomberg financial journalist and co-host of Odd Lots it was probably due to President Donald Trump’s statement. She She said:
“The S&P 500 futures do not like Trump’s suggestion to go to the supreme court to contest the election results. It is now in red. “
Bitcoin’s recent crash is noteworthy as it fell at the same time as the dollar. Typically, when the dollar falls, Bitcoin and gold tend to go up, as both stores of value trade for the dollar.
As reported by Cointelegraph, BTC has seen low correlation with other assets, including stocks in recent weeks. Therefore, the collective correction among most major assets comes as an unexpected response from the market.
What will happen to BTC in the short term?
According to CryptoQuant data, The estimated leverage ratio of Bitcoin futures on Binance has peaked historical. This indicates it there are more traders on Binance’s BTC derivatives market than ever.
Ki-Young Ju, the CEO of CryptoQuant, warned to traders on November 4th on the increased volatility caused by the cascading settlements. If there are an abnormally large number of contracts on the market, it can cause huge price movements.
In the short term, given the repeated rejection of the $ 14,000 level, traders lean towards a market crash.
There are several key levels of support in the near future for Bitcoin. First, the $ 13,300 area has been strongly defended in the past week. If BTC continues above $ 13,300, it would indicate resistance from buyers.
Second, the $ 13,000 level has been supported by groups of whales since early November. This means that the whales have amassed large amounts of BTC at that level, making it an area of interest for buyers.
Keep reading:
[ad_2]
Source link
