Yesterday, Bitcoin began a powerful downward correction and many traders immediately had this question, "Is this the moment to reset long positions which will lead to a drop in the bitcoin exchange rate by 80-90%? The experts and pseudo-experts of the cryptocurrency market say who are often just the owners of the "cue ball", which means that it is profitable for them to warm up interest in this cryptocurrency so that it continues to grow, bitcoin can fall at any time almost to the values of $ 5,000 to $ 6,000. Bitcoin has no cost price or fair price, so it can fall as low as you want. This was already the case in 2017, and everyone remembers it. In 2021, everyone clearly understands that bitcoin is only an investment tool that leads everyone to buy with one goal in mind and it is to earn money. And everyone understands that sooner or later it will collapse in price. Companies like Tesla or Microstrategy are no exception. According to official data from cryptocurrency exchanges, yesterday, within one hour, traders closed long positions for $ 410 million. This is the official data. However, given the fact that the total capitalization of bitcoin is already about 1 trillion and it is likely that more closed long positions would be needed to drop the quotes by $ 10,000 dollars downward. Therefore, it is absolutely possible that purchases were closed for several billion dollars or even tens of billions. However, a little later, this information was published by the exchanges – the total closing of long positions amounted to $ 3.5 billion. Thus, one of the major players considered that he would have enough profit from the operation of buying and selling bitcoin which has increased in price five times over the past few months. Therefore, now everything will depend on other market players. The game begins on the nerves. Holders of a small number of bitcoins may be afraid that now the cryptocurrency will collapse down and start getting rid of their coins. However, due to their number, this is enough for bitcoin to continue its decline. But when the big players start selling bitcoin then the cryptocurrency will definitely collapse. Therefore, the next few days for the "cue ball" can be extremely important. If the market's nerves hold, bitcoin will be able to continue its growth in the direction of the magic figure of $ 100,000 per coin. If not, it will collapse. These days, the comments of the whales of the cryptocurrency market like Elon Musk or other major holders or experts in this field will be especially important or just people that the market listens to. As discussed earlier, the market is extremely impressionable and is ready to respond with bitcoin purchases if it understands that larger players are also buying it at this time.
FX.co ★ Traders have reduced long Bitcoin positions in the amount of $ 3.5 billion.
Traders have reduced long Bitcoin positions in the amount of $ 3.5 billion.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade