Bitcoin Is Crashing, But Alternative Markets Are Calling For BTC Price To Rise!

in hive-183397 •  14 days ago 

Last month we saw a rise in the price of Bitcoin, and the price of Bitcoin continued to rise at the beginning of this month as well. But Bitcoin is currently undergoing a bit of a correction after hitting new all-time highs, and over the past two days, Bitcoin's price declines have resulted in around $2.9 billion worth of Bitcoin liquidations in the market. Even though the price of Bitcoin has dropped or suddenly flushed out at the moment, it is in short that BTC is poised for new highs. MicroStrategy, Riot Platform, and Marathon Digital (MARA) have been active bitcoin buyers in recent weeks. They recently purchased around 21,550 BTC. Meanwhile, the Miners Riot platform has raised $500 million in debt. However, these aspects point to an upward trend in the price of Bitcoin, which is primarily intended for Bitcoin acquisition. Even MARA significantly increased its holdings by adding 11,774 BTC to its balance sheet during the same period.

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We have seen the Bitcoin price fall again over the last two days which is essentially a crash of the Bitcoin price decline. And because of the current crash that wiped out $2.9 billion in leveraged positions. Basically many times when the price of Bitcoin suddenly drops, it ends up leveraging people to get their money down to zero and sometimes even suddenly pumps it up for the same reason.

However, despite the short-term negative impact on sentiment at present, the Bitcoin derivatives market is currently in a much healthier state. However, we can see the price of Bitcoin rise again very soon and expect a new rally to start for a surprise rally for Bitcoin to a new all-time high. Generally we find that traders are less likely to buy during those signs when the market is overheated. Such is an exorbitant perpetual contract funding rate. For example, if we review the last few days, we can see that the total Bitcoin futures open interest has decreased by several percent during this period. But Bitcoin's sudden price crash two days ago left it essentially flat at $94,200. Bitcoin's recent crash has washed away excess retail leverage that typically fuels cascading liquidations.

But one thing to keep in mind is that the market volatility we see in Bitcoin prices is sometimes created to scare off new entrants. So that the appeal of the new investors is reduced. Since we saw the price of Bitcoin rise by more than 70% over the past three months, it was only natural that the price of Bitcoin would fall. As Bitcoin eyes further gains as ETF flows defy short-term fears. But the good news here is that this short-term bitcoin price decline points to a relative bullish trend in bitcoin prices as spot bitcoin exchange-traded funds in the U.S. have added nearly $15.2 billion in assets since October. Unlike retail traders who are big whales and market makers who are bullish as Bitcoin monthly futures were 15% above the spot market price. However, current levels look flat from two weeks ago. And as a result the temporary leverage that triggered the demand spike is no longer present. This scenario provides room for additional bullish positioning as well as favors further price gains.

However the current Bitcoin crash is temporary as we will soon see a good bullish price for Bitcoin. For example, if we consider the past Bitcoin halving periods, it can be seen that the price of Bitcoin is looking bullish. If we review the past 2012, 2016 and 2020 periods, the price of Bitcoin may exceed one hundred thousand dollars very soon. If the trend of 2020 continues, then the price of Bitcoin may go close to one and a half million dollars in January. There's nothing wrong with being optimistic, though. Especially since President-elect Donald Trump's inauguration is set to take place on the 20th, cryptocurrency traders often rely on leverage so normal price swings could cause additional unexpected volatility during that time.

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Upvoted! Thank you for supporting witness @jswit.

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Meanwhile, Bitcoin is building its position again.

It is a great post of Bitcoin Is Crashing, But Alternative Markets Are Calling For BTC Price To Rise!