• Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us
Newsletter
Crypto Hoarding
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us
No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us
No Result
View All Result
Crypto Hoarding
No Result
View All Result
Home Bitcoin

Bitcoin price slides 5% after failing to break $60K — Here’s why – Cointelegraph

Admin by Admin
March 21, 2021
in Bitcoin
0
Bitcoin price slides 5% after failing to break $60K — Here’s why – Cointelegraph
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

The price of Bitcoin (BTC) dipped below $56,000 on March 21 after repeated rejections by the $60,000 resistance level throughout the past four days.

BTC/USD 1-hour candle chart. Source: Tradingview

Despite getting closer to cleanly breaching past the key technical level, Bitcoin has been showing weakness in the $59,000 to $60,500 range.

Related articles

Bitcoin miners struggle with crypto’s price decline, rising energy costs, and increase in mining difficulty – MarketWatch

Bitcoin miners struggle with crypto’s price decline, rising energy costs, and increase in mining difficulty – MarketWatch

July 5, 2022
Bitcoin ‘tourists’ have been purged, only hodlers remain: Glassnode – Cointelegraph

Bitcoin ‘tourists’ have been purged, only hodlers remain: Glassnode – Cointelegraph

July 5, 2022

There are three major reasons behind the stagnation: the rise in Treasury yields, bearish movements on Bitfinex, and the struggle of the risk-on market.

High U.S. Treasury yields cause risk-on markets to slump

When the 10-year U.S. Treasury yield rises, the appetite for risk-on assets tends to drop because investors can seek safer yield-generating alternative in Treasury bonds.

Although Bitcoin has not seen tight correlation with the Dow Jones, it has seen close correlation with tech-heavy indices, like the S&P 500.

This suggests that the strong momentum of the U.S. Treasury bonds is leading risk-on assets to stagnate, bringing down Bitcoin’s momentum in tandem, as Cointelegraph previously reported.

The U.S. Treasury yields began to break out above key levels starting March 19. Since then, Bitcoin has been consolidating, struggling to rise above $60,000.

Holger Zschaepitz, a market analyst at Welt, said:

“Treasury yields breached more key levels as bond traders boosted bets that the Fed will allow inflation to overshoot as US economy recovers. 10y yields top 1.75% w/ING sees ‘no real barrier’ for move higher.”

The 10-year Treasury yield rises above 1.7%. Source: Bloomberg, Holger Zschaepitz

For Bitcoin to see a sustainable rally, it needs to see a favorable macro landscape, which would only be possible through the stabilization of U.S.Treasury yields.

Selling pressure on Bitfinex at $60K resistance

According to a pseudonymous Bitcoin trader and technical analyst known as “Byzantine General,” there has been serious selling pressure on Bitfinex.

Other derivatives trading platforms, like Deribit, FTX, and BitMEX also saw decent short interest, the trader said.

He wrote:

“Yeah… Fuckery still not over. Bitfinex still unloading. There was serious short interest on Deribit, Mex & FTX. OI is finally unwinding though.”

Bitcoin price with short interest. Source: Tradingview.com, Byzantine General

The combination of an unfavorable macro landscape and the selling pressure from both whales and derivatives traders likely caused Bitcoin to consolidate under $60,000.

However, in the foreseeable future, the likelihood of a relief rally could increase if the open interest of the futures market continues to unwind.

The term open interest refers to the total sum of active positions in the futures market. When this declines, it means that there is generally lower trading activity concerning derivatives.

There is one positive catalyst

Willy Woo, the prominent on-chain analyst, explained that Bitcoin has a decent chance of not going under $1 trillion market capitalization again.

Woo noted that the UTXO Realized Price Distribution (URPD) indicator, which shows the realized price of all UTXOs on any given day, indicates that the $1 trillion market cap is acting as a price floor. He said:

“URPD: ‘7.3% of bitcoins last moved at prices above $1T.’ This is pretty solid price validation; $1T is already strongly supported by investors. I’d say there’s a fair chance we’ll never see Bitcoin below $1T again. It’s only been 3 months since Bitcoin broke the $19.7k all-time-high of the last macro cycle. But already 28.7% of bitcoins moved at prices above $19.7k.”

UTXO Realized Price Distribution. Source: Glassnode

The on-chain data also indicates that while there has been short-term selling pressure, these moves are not large enough to suggest that the market is anticipating a prolonged correction.

Share76Tweet47

Related Posts

Bitcoin miners struggle with crypto’s price decline, rising energy costs, and increase in mining difficulty – MarketWatch

Bitcoin miners struggle with crypto’s price decline, rising energy costs, and increase in mining difficulty – MarketWatch

by Admin
July 5, 2022
0

Many bitcoin miners, who expanded operations in 2021 to capture more profits, are now struggling as the crypto’s price crashed....

Bitcoin ‘tourists’ have been purged, only hodlers remain: Glassnode – Cointelegraph

Bitcoin ‘tourists’ have been purged, only hodlers remain: Glassnode – Cointelegraph

by Admin
July 5, 2022
0

So-called “market tourists” are fleeing from Bitcoin (BTC), leaving only long-term investors holding and transacting in the top cryptocurrency, according...

Bitcoin price spikes to $20K as whale bought BTC confirms support – Cointelegraph

Bitcoin price spikes to $20K as whale bought BTC confirms support – Cointelegraph

by Admin
July 4, 2022
0

Bitcoin (BTC) rose to clip $20,000 for the first time in five days on July 4 as the Independence Day...

Bitcoin Recovers to Over $19K; Nomura Warns of US, UK Recession – CoinDesk

Bitcoin Recovers to Over $19K; Nomura Warns of US, UK Recession – CoinDesk

by Admin
July 4, 2022
0

The analysts said they expect Europe, the U.K., Japan, South Korea, Australia, U.S. and Canada to fall into recession. They...

Coinbase Says Miners’ Sales of Newly Minted Bitcoins Don’t Add Significant Market Pressure – CoinDesk

Coinbase Says Miners’ Sales of Newly Minted Bitcoins Don’t Add Significant Market Pressure – CoinDesk

by Admin
July 4, 2022
0

In times of market upheaval and a falling bitcoin price, margins compress across the board, and force more miners to...

Load More
  • Trending
  • Comments
  • Latest
Major Changes Coming to XRP Ledger As Ripple-Backed Startup Launches Key Amendment in Beta Testnet – The Daily Hodl

Major Changes Coming to XRP Ledger As Ripple-Backed Startup Launches Key Amendment in Beta Testnet – The Daily Hodl

April 21, 2021

SteveWillDoIt reveals hacker stole his crypto wallet: “I lost a lot of money” – Dexerto

July 26, 2021
Forte’s PTI gets financial transaction licenses for blockchain games – VentureBeat

Forte’s PTI gets financial transaction licenses for blockchain games – VentureBeat

February 11, 2022
DOGE passes Uniswap and Litecoin to become 8th largest cryptocurrency by market cap – Cointelegraph

DOGE passes Uniswap and Litecoin to become 8th largest cryptocurrency by market cap – Cointelegraph

April 15, 2021
Crypto hackers loot $2 billion in H1 2022 as cybercriminals thrive – Finbold – Finance in Bold

Crypto hackers loot $2 billion in H1 2022 as cybercriminals thrive – Finbold – Finance in Bold

0

Rivals Ripple and R3 partner up | PaymentsSource – American Banker

0
Ripple seeks shelter in D.C. from Libra’s political storm – American Banker

Ripple seeks shelter in D.C. from Libra’s political storm – American Banker

0

Litecoin Gets Bullish Speculation, at Last, as Upgrade Approaches – Coindesk

0
Crypto hackers loot $2 billion in H1 2022 as cybercriminals thrive – Finbold – Finance in Bold

Crypto hackers loot $2 billion in H1 2022 as cybercriminals thrive – Finbold – Finance in Bold

July 5, 2022
Bitcoin miners struggle with crypto’s price decline, rising energy costs, and increase in mining difficulty – MarketWatch

Bitcoin miners struggle with crypto’s price decline, rising energy costs, and increase in mining difficulty – MarketWatch

July 5, 2022
Ripple may benefit from new Supreme Court makeup in XRP lawsuit – FinanceFeeds

Ripple may benefit from new Supreme Court makeup in XRP lawsuit – FinanceFeeds

July 5, 2022
How miners are preparing for Ethereum’s Merge and the implications on ETH price – FXStreet

How miners are preparing for Ethereum’s Merge and the implications on ETH price – FXStreet

July 5, 2022
Crypto Hoarding

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

Categories tes

  • Bitcoin
  • Blockchain
  • Cryptocurrency Hackers
  • Ethereum
  • Litecoin
  • Ripple

Newsletter

[mc4wp_form]

  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us

© 2017 JNews - Crafted with love by Jegtheme.

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us

Copyright (c) 2021 - Crypto Hoarding - All Rights Reserved - web design by TechyRack