Data show that the price of bitcoin has dived for two consecutive days, with the largest cryptocurrency by market capitalization falling nearly 10% through the $50,000 support level in the past 24 hours, dropping its market cap share to 40.64%.
Bitcoin’s price has fallen 17 percent since Sunday and could be on track for its worst week of performance since February.
According to an article published by Forbes, the latest data from Chicagoland shows that asset managers, a class of institutional investors including pension funds, are using Chicagoland Bitcoin futures to allocate an increasing number of “short” positions, betting on a decline in Bitcoin’s price. The value of these short contracts has increased from $0 in early January to $380 million last week, the highest level the portfolio has seen since records began.
Skew’s data also shows that there has been a lot of liquidation in the futures market over the past 24 hours, topping out at more than $400 million at around 6 a.m. GMT on May 13.
Delta Exchange CEO Pankaj Balani said, “Technical indicators show a very weak bitcoin move without any obvious positive triggers driving BTC higher.”
However, Glassnode data shows that the supply of bitcoin owned by long-term holders (HODLers) has shown an accumulation pattern (shown in the chart below), and while it looks similar to the 2017 peak, the current amount of circulation held by HODLers has increased by more than 8 percent. This means that long-term cryptocurrency holders are increasing their holdings each time the price falls, reflecting the strong consensus attribute of Bitcoin, such as MicroStrategy, which has once again hoarded 271 BTC.
Chain analyst Willy Woo noted that the waterfall phenomenon caused by Musk’s tweet is recovering. Net inflows (selling) on exchanges are turning into outflows (buying).
Some analysts continue to be bullish, stating that bitcoin prices remain above their 21-week averages with support levels at $47,100 and $42,930, and if prices do not fall below these support levels, weekly numbers will target $74,300 and $86,600.
Analyst Denys Serhiichuk believes that even if the chances of further declines remain high, accompanied by increased buying volume, it is likely to see a long test of $53,500. However, there is a lot of resistance on the long side to the upside and the rally could be a short-lived correction after a sharp sell-off rather than the start of a new rally.
Bestselling author and Twitter vlogger jimmy Song, a staunch bitcoin supporter, said, “Every time the bull market kicks off, new people get excited that so-and-so celebrity is buying bitcoin. Come on, Bitcoin doesn’t need their verification, their endorsement, or their money. Rather, they need bitcoin.”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/bitcoin-dives-for-two-consecutive-days-next-bull-or-bear/
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