Musk tweet may trigger market panic selling, BTC market is expected to stabilize and rebound

BTC bottom support is showing signs of increasing strength.

India’s central bank said there is no change in policy on cryptocurrencies. South Korea’s National Tax Service announced that South Korean residents who have accounts on foreign cryptocurrency exchanges may have to report their holdings for tax purposes starting in 2022. In the near future, many countries may continue to introduce regulatory policies for cryptocurrencies.

Today’s drop in bitcoin is somewhat related to Musk’s series of tweets. There was speculation in the market that Musk may be selling off Bitcoin, thus triggering some panic in a relatively fragile market sentiment. However, from the on-chain data, the support below BTC is strengthening, the number of BTC holdings addresses is showing signs of stabilization, the net increase in BTC lockups in DeFi is 4336 pieces, BTC is expected to stabilize and rebound in the aftermarket. important resistance above BTC is $40,000 and support below is $35,800.

Abstract

  1. Today’s drop in bitcoin is somewhat related to Musk’s series of tweets. There is speculation in the market that Musk may be dumping bitcoin, thus triggering some panic in a relatively fragile market sentiment.
  2. according to firecoin quotes, BTC fell sharply today, which has a more direct impact with Musk’s tweet remarks, and market panic aggravated; together with serious selling pressure above BTC, this is also the main reason for BTC’s fall today. the important resistance level above BTC is $40,000, and the support level below is $35,800.
  3. from the miners production and selling accumulation data can be seen, miners production stabilized and rebounded, selling volume also increased today, miners 24 hours net accumulation of 128 BTC, miners overall tend to shy away from selling, which is conducive to BTC after the market upward.
  4. the number of BTC coin-holding addresses has signs of stabilization, the net increase of 4336 BTC locked positions in DeFi, there are obvious signs of weakening of the selling pressure above BTC, BTC is expected to stabilize and rebound in the market.
  5. market sentiment has rebounded, but the pressure above BTC is relatively large, and there are signs of capital outflow.
  6. The contract market is slightly dominated by long positions, and the ratio of long to short positions in BTC is shaking higher.
  7. The mainstream crypto index in the crypto market today is generally up, among which the cottage coin index is down the most, and there are signs of certain capital flight.

I. Macro market and cryptocurrency news
RBI Governor Shaktikanta Das said that we are concerned about cryptocurrencies and there is no change in the policy for cryptocurrencies. South Korea’s National Tax Service announced that South Korean residents with accounts on foreign cryptocurrency exchanges may have to report their holdings for tax purposes starting in 2022. The future of regulation regarding cryptocurrencies is expected to be a matter of ongoing concern for multiple governments. Today’s drop in bitcoin is somewhat related to Musk’s series of tweets. There is speculation in the market that Musk may be selling off Bitcoin, thus triggering some panic in a relatively fragile market sentiment.

II. Technical Analysis
The BTC market is in the midst of a series of tweets from Musk that have a direct impact on the market.

Three, miners accumulation indicators
According to bytetree data, from miner production and selling accumulation data can be seen, miner production stabilized and rebounded, selling volume also increased today, miners 24 hours net accumulation of 128 BTC, miners as a whole tend to shy away from selling, which is conducive to BTC after the market upward.

Musk tweet may trigger market panic selling, BTC market is expected to stabilize and rebound

IV. On-chain indicators
According to Oklink data, by observing the number of held addresses, we can see that the number of BTC held addresses continues to fall back, although there are signs of weakening BTC selling pressure. As of 16:00 today, the locked position of BTC anchored assets in DeFi is 245859 (241523), and the net increase of BTC locked position in DeFi is 4336 BTC. From a comprehensive point of view, the number of BTC held addresses shows signs of stabilization, and the net increase of BTC locked position in DeFi is 4336.

V. Panic index and buying and selling strength indicators
According to alternative.me data, today’s panic and greed index is 27 (23 yesterday), the market panic index has slightly increased. According to the data of Toronto exchange, BTCC volume copies for the whole day was 292548 (564709), and the volume showed a significant recovery; the gray GBTC premium was -11.5% (yesterday -12.9%). According to coincoin data, as of 16:00 today, BTC current funding rate -0.044% (yesterday -0.02%%), funding shorting sentiment is relatively strong; the current bitcoin RSI 14 (buying and selling relative strength index) is 39.9 (yesterday 40), the field buying power has not changed much. Overall, market sentiment has picked up, but the selling pressure above BTC is relatively large, and there are signs of capital outflow.

Musk tweet may trigger market panic selling, BTC market is expected to stabilize and rebound

VI. Contract indicators
According to coincoin data, as of 17:00, the BTC network-wide long-short position number ratio is: long 51.05%, short 48.95%, the long position slightly dominant. According to OKEx contract data, on the hourly chart, the BTC long-short position count ratio is higher, and the market is in a strong bullish mood in the short term. From a comprehensive point of view, the contract market is slightly dominated by long positions, BTC long to short positions than oscillating higher, BTC after the market is relatively strong short-term bullish sentiment, is expected to stabilize the rebound.

Seven, mainstream assets and popular coins
According to Chainext data, the mainstream crypto index in the crypto market is generally up today, among which the cottage coin index is down the most, and there is a certain sign of capital exodus. At present, among the top 100 coins in the 24-hour period, the top five coins in terms of gain are FIL (25.4%), NANO (7.2%), UMA (4.0%), ICP (0.7%), and BTT (0.5%).

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/musk-tweet-may-trigger-market-panic-selling-btc-market-is-expected-to-stabilize-and-rebound/
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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