BTC, ETH Find Support After Sell-Off, Long-Term Technicals Remain Strong

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The selloff in the cryptocurrency market that began on Monday this week intensified overnight, with Bitcoin (BTC) dropping to 55,600 before starting a slight recovery during early European trading hours.

At 11:20 UTC, bitcoin was trading at $56,777, down 5.8% over the past 24 hours and down 12.6% over the past seven days.

Source: CoinGecko

Meanwhile, Ethereum (ETH) is down 3% in the past 24 hours and 12.6% over the week, trading at $4,129. The current price means that the second most valuable crypto asset has also pared losses from earlier, having fallen below the key $4,000 level several times overnight in UTC.

Source: CoinGecko

As usual, the overnight selloff led to massive buy-side liquidations in the crypto derivatives markets. According to data from Coinglass.com, the past 12 hours saw $196 million in liquidations across all currencies and exchanges, while bitcoin alone saw $112 million in liquidations over the same period.

Commenting on the current state of the bitcoin market from a technical analysis perspective, Ki Young Joo, CEO of cryptocurrency analysis website, said: CryptoQuant, he identified several key support levels as he said the price is “likely to bounce at”.

Depending on the support levels identified by the analyst, the $55,000 level will be the next level to watch on the downside, as the price is currently hovering around the $57,000 support area.

Source: CryptoQuant

Commenting more on the actions of some of the most important market participants – the so-called long-term bitcoin holders (LTHs) – an on-chain analytics firm glass books On Twitter today, these major players “don’t seem to be spending their coins in a panic.”

The company’s analysts added that long-term holders are still in place, despite a correction of about 20% from the all-time high, and that the “vast majority” of LTH holders are still profitable.

Source: Glassnode

Others also painted an optimistic picture based on more traditional charting techniques, with popular Twitter user The Crypto Dog saying that a price drop could simply be a retest of the long-term trend line in the Bitcoin chart.

However, not everyone was equally optimistic about the price of bitcoin – at least not in the short term.

as For a cryptocurrency trading educator and Encoder-TA.nl Crypto founder Ed, Bitcoin slumped “much less” than expected. The popular Twitter user added that he expects “at least” one pullback before the sell-off ends.

Meanwhile, some observers have also linked the current sale to the upcoming distribution of bitcoin that he is holding Mount Gox Guardian in Japan.

Commenting on Reuters today, Matthew Depp, COO of Crypto Asset Manager, said: stacked boxesHe said fears that some Mt.Gox creditors might become sellers after the release of bitcoin from the custodian “bring some fear” to the market.

However, the industry insiders Cryptonews.com Talk with earlier did not share the concern.

According to Julian Liniger, co-founder and CEO of a Switzerland-based BTC broker rotationHowever, the majority of Mt.Gox’s creditors are among the first Bitcoin users who can be considered “long-term insured and scammers”. As such, many of these people would not sell any coins at all, Liniger argued.

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Learn more:

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– Approval of the “final and binding” decision of Mount Gox

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