This Bitcoin Metric Suggest More Blood As BTC Drops 6%
26 November 2021 - 6:15PM
NEWSBTC
Bitcoin wrapped up this past Thanksgiving night with a bloody
trading session. The first crypto by market cap was rejected as it
made its way to $60,000 and has dropped over 6% in the 24-hour
chart. As of press time, BTC trades at $54,084 but seems at risk of
further downside. Related Reading | New COVID Variant FUD Drives
Bitcoin Down To $54k Besides Bitcoin, the traditional finance
market took a hefty dive on news of a recently discovered COVID-19
variant in Africa. This wrack havoc across many sectors with the
S&P 500 and DOW Jones recording an almost 3% loss in the past
24 hours. As 2020 and 2021 have shown, Bitcoin shows a high
correlation with traditional markets during periods of
macroeconomic development. Thus, one of the reasons the benchmark
crypto has been trending to the downside as investors could fear a
new phase of lockdown across the world to prevent the alleged new
variant from spreading. The U.S. Dollar as measured by the DXY
Index has also taken a dive with a 0.71% loss in the 24-hour chart.
The currency was showing significant strength since November 10th,
when the U.S. Federal Reserve hinted at the beginning of tapering
but was rejected at the 97-price mark. The U.S. dollar rally has
been attributed as one of the reasons Bitcoin display weaknesses in
the past week. A rejection at these levels could provide BTC’s
price with some relief allowing it to make a more convincing rally
into $60,000 and uncharted territory if it’s able to prevent more
downside in the short term. The positives of today's selloff: 1.
It's clearing out the weak hands/excess leverage 2. The $DXY is
dropping back below its channel top We'll see if the latter
translates to $BTC strength in the coming days.
pic.twitter.com/NZ3B1geHUN — Justin Bennett (@JustinBennettFX)
November 26, 2021 Bitcoin One Step Closer To New Highs? As NewsBTC
has been reporting during this week, the key for Bitcoin to resume
its bullish momentum could be found in the derivatives and futures
market. This sector has been overheated during November as traders
expected BTC to quickly push beyond $70,000. Related Reading |
Whales Fill Up On Bitcoin While Broader Market Panics Funding rates
across exchanges, even as Bitcoin continued to retest critical
support and saw an increase in selling pressure, was high. In
addition, data shared by pseudonym analyst Byzantine General
suggested that the total Open Interest across the market barely
moved with the recent downside price action suggesting there is
still some leverage to be purged from the market. Still barely
flinched lmao. And the market is now relatively speaking more
leveraged up. pic.twitter.com/1AVPh9oOR5 — ₿yzantinΞ General
(@ByzGeneral) November 26, 2021 As of press time, funding rates
across exchanges are finally beginning to flip negative but remain
positive in two major exchanges: Bybit and Binance, the latter has
turned more neutral in the past hour. Still, some more pain could
come as BTC head into the weekend.
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