After BTC fell below $40,000, is it time to bottom out?

Bitcoin suffers another socialist beating after Musk’s irresponsible comments.

After BTC fell below ,000, is it time to bottom out?

Bitcoin fell below $40,000 per coin at midday today, retreating about $25,000 from its all-time high and dropping about 12% in 24 hours and nearly 30% in 7 days.

As of press time, Coingecko data shows that the price per bitcoin and ethereum is about $40,231 and $2,976, respectively.

The continuous negative days change the belief of the market, according to the microblogging poll of coinman Nangong Yuan, the market sentiment has reversed, some people shouted cut the meat, while others shouted it is the bottom.

So is it time to take the bottom?

Exploded $1.9 billion 227,000 people were exploded
According to CoinCoin data, the market blowout in the last 24 hours was about $1.93 billion, with nearly 227,000 people becoming victims of the blowout. The long-to-short headcount ratios for mainstream cryptocurrencies are at high levels, with the short side dominating.

The recent heavy setback in the cryptocurrency market started with comments from Tesla CEO Ma Elon Musk. on May 12, Musk said that Tesla suspended accepting payments using Bitcoin due to concerns about the environmental impact of Bitcoin mining, and Bitcoin then entered a rapid decline – the market mostly attributed the decline to Musk’s irresponsible “nonsense,” in addition to the fact that Musk said back on May 17 that Tesla was not dumping bitcoin.

In a reversal of events, Bitcoin has recovered some lost ground but has randomly received another blow from the Chinese side: Yesterday, the China Internet Finance Association, China Banking Association and China Payment Clearing Association jointly issued an “Announcement on Preventing the Risk of Speculation in Virtual Currency Trading”. The announcement requires financial institutions and payment institutions not to use virtual currency to price services and products, not to underwrite insurance business related to virtual currency or include virtual currency in the scope of insurance liability, and not to provide other services related to currency directly or indirectly for customers.

However, after lunch today, bitcoin rallied back above $40,000 per coin. Overall, the current bitcoin price level has retraced more than 30% from its market high, meeting the criteria for a significant retracement in a bull market. Multiple analysts say that the correction could be as long as several weeks.

Chinese and Western Gaming 16,835 Bitcoins Withdrawn
The confusion for investors still holding on to this market is, is it a good time to add to your positions when the market has pulled back so much?

Data from Glassnode shows that there has been a panic sell-off by short-term holders (STH) during this decline, similar to what happened at the peak in 2017, although the number of cryptocurrencies held by STH and the percentage of supply in circulation are both significantly lower than in 2017. In contrast, the data trend for long-term holders (LTH) is the opposite, as LTH is continuing to purchase cryptocurrencies during the current decline, in addition to LTH owning more than 2.4 million more BTC (8% of the supply in circulation) than at the 2017 peak, i.e. a large amount of cryptocurrencies are in cold wallets.

Quantitative trader and analyst Lex Moskovski posted a tweet noting that 22,917 bitcoins flowed into exchanges yesterday, while the latest tweet stated its noted that 16,835 bitcoins are being raised from exchanges, indicating that someone is bottoming out at a low price.

You’re not alone in bottoming.

But the question is when should you bottom?

Vijay Ayyar, head of business development at cryptocurrency exchange Luno, sees this pullback with a bottom between about $38,000 and $40,000, Galaxy Digital CEO Mike Novogratz said in an interview yesterday that $40,000 is the buying range, and analyst Carter Worth thinks BTC will hit a low of $29,000.

Bank of America just released the results of its latest monthly survey, which showed that 43% of fund managers believe “long bitcoin” is the most crowded trade, and 75% of fund managers believe bitcoin is in bubble territory (up slightly from 74% the month before). Notably, when bitcoin hit a new high in January of this year, “long bitcoin” was also voted the most crowded trade.

Interestingly, top hedge fund Balyasny Asset Management was recently reported to be doing its due diligence and considering betting on bitcoin.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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