Bitcoin (BTC) price fell below $ 10,000 on the main stock exchanges on September 5th, on two consecutive test days of the decisive level. Other major cryptocurrencies, including Ether from Ethereum (ETH), fell nearly 10%.
Bitcoin daily chart. Source: TradingView.com
Three factors that likely contributed to Bitcoin’s sharp decline are that miners, a strong dollar and the Whales make a profit.
Did the whales benefit from it?
When the price of Bitcoin suddenly dropped 5% and hit $ 9,975 on Binance, BitMEX sales were below $ 40 million. Usually, When there is a massive movement in prices, futures contracts worth more than $ 100 million are executed.
Futures data suggests that selling pressure is coming from the spot market. While possible, there is a small chance that retail investors will sell aggressively above $ 10,500.
Whales are more likely to benefit from $ 10,500that historically as Multi-year resistance level for Bitcoin.
But Whales have been making profit since the price of bitcoin hit $ 12,000. As Cointelegraph previously reported, after “HODLing” (saving) a whale was sold by BTC for over two years for $ 12,000.
Some miners might sell
During the week, on-chain data provider CryptoQuant said so Mining basins had made a profit. Ki Young-Ju, the company’s CEO, said::
“Miners regularly send a certain amount of Bitcoin to exchanges so they already have a large amount of BTC on the exchange. Every time they decide to sell, they seem to have a relatively large amount of BTC in other wallets and part of it postponing it goes to exchange. “
The gradual sale of Bitcoin by miners since mid-August could have put significant selling pressure on Bitcoin. However, Poolin’s Vice President Alejandro De La Torre stressed that keeping track of the miners’ departures was a challenge. He showed::
“I can assure you that CryptoQuant does NOT know which wallets Poolin owns. Perhaps it is a group of (big) miners who are chasing them … yet there are many assumptions.”
A strong dollar, a weak ether
A common theme over the past two weeks – when Bitcoin was consolidated – has been the strengthening of the US dollar. The dollar showed signs of recovery after falling for four months as the euro began to fall.
Since both Bitcoin and gold prices are mainly valued by the US dollar and many BTC traders are based in the US, The appreciation of the dollar contributed to the weakening of the price of Bitcoin.
Important technical levels for ETH / USD. Source: TradingView.com
In addition, lA significant drop in the price of Ethereum could have intensified the downward trend. On September 5, ETH fell below $ 360 to less than $ 340. A well-known trader named “Byzantine General” said that if ETH falls below $ 360, $ 290 is the next likely target. Said as:
“I’ve learned that this is a ‘growing, right-angled upward formation’. Very typical of an uptrend and a fairly neutral pattern: 55% of the time it breaks up. But the 360 better stay or we go straight to 290 or maybe 250“.
Ether has been going hand in hand with Bitcoin’s price rally since early April, and ETH’s weakness could have compounded BTC’s short-term price drop. But Bitcoin has since bounced back and stabilized above $ 10,200. The trend shows decent buy demand above $ 10,000 which could lead to a longer period of consolidation.
Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said the move could be bullish for the price of Bitcoin. highlight as:
“Finally the liquidity at the minimum that was taken. The USD 10,000 rally would mean an S / R reversal (trading low versus resistance) and a very likely chance that we will seek liquidity above the range high.. That would fit a rebound to $ 10,750-10,900, and most markets rebound 25-40%. “
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