Bitcoin’s price fell to $3.1K on November 29th and continued to drop over the following days, reaching an all-time low of $31K on December 4th before bouncing back a little bit. Traders are now preparing for what could be a “rocky” road ahead as Bitcoin faces more downside risk in 2018.
The “btc squeeze” is a term that refers to the price of Bitcoin falling. The market has been preparing for a rocky road ahead, and the downside may be more than expected.
“When it rains, it pours” is an ancient adage that has new meaning in the cryptocurrency markets on May 9, as traders face yet another day of suffering as Bitcoin (BTC) falls to its lowest level since 2022.
The BTC selloff on May 9 accelerated as the trading day proceeded, with Bitcoin reaching a daily low of $31,000 as bulls tried to mount a feeble defense, according to data from Cointelegraph Markets Pro and TradingView.
1-day chart of BTC/USDT. TradingView (source)
Here’s a look at some of the events that contributed to the crypto market’s price drops on May 9, as well as what traders may expect as the crypto market continues to tumble.
Another disadvantage is the risk of failure.
Because bears have been relentless in their efforts to drive the price down, bitcoin bulls have failed to create a stable floor of support in recent months.
BTC is now down 50% from its all-time high in November, according to on-chain monitoring company Glassnode, and this drop “remains mild when compared to the final lows of preceding Bitcoin bear markets.”
The price of bitcoin has dropped from all-time highs. Glassnode is the source of this information.
The drop in July 2021 peaked at -54.2 percent, whereas the “bear markets of 2015, 2018 and March 2020 capitulated at lows between -77.2 percent and -85.5 percent below the all-time high,” as indicated in the graph above.
Network profitability has also dropped to levels witnessed during the late-2018 and late 2019–2020 bad markets.
Bitcoin: Profitable supply, entities, and addresses Glassnode is the source of this information.
According to Glassnode,
“Both of these incidents occurred before the ultimate capitulation flush out event. As a result, additional downside remains a possibility, and would be consistent with previous cycle performance.”
Traders are avoiding taking risks.
A closer look at the on-chain data reveals that Bitcoin investors’ surrender has accelerated in recent weeks as the price has continued to fall.
The Bitcoin exchange fee dominance, which counts what proportion of the Bitcoin network’s fees were paid to deposit BTC to an exchange, is evidence of this surrender.
The dominance of Bitcoin exchange fees. Glassnode is the source of this information.
The abrupt increase in Bitcoin exchange charge domination to 15.2 percent, according to Glassnode, is the second-highest in history and “further supports the idea that Bitcoin investors were looking to de-risk, sell, and/or add collateral to margin in reaction to market turbulence.”
Stablecoin supplies, which have decreased over the previous two months after expanding from $5.33 billion to $158.25 billion since the market selloff in March 2020, provide another evidence of a surge in risk-off attitude.
The aggregate stablecoin supply has decreased by $3.285 billion since peaking at $161.53 billion in early April, as redemptions of USD Coin (USDC) have exceeded inflows across all stablecoin tokens.
30-day change in aggregate stablecoin supply. Glassnode is the source of this information.
According to Glassnode,
“Overall, there are many signs of net weakness in the area, many of which imply that risk-off sentiment is still the dominant market stance at this moment.”
Bitcoin hits new lows in 2022, with one expert predicting a realized price of $24,000.
Possibility of having a position worth more than $30,000
Many crypto traders have turned gloomy and accepted the idea of a drop below $28,000 as a result of recent market volatility, which has piqued the contrarian opinions of certain experts, including futures trader Peter Brandt, who wrote the following tweet in response to the shift in mood.
I’m obliged to revise my viewpoint now that 28,000 is commonly acknowledged as a downside goal. Either the price stays over 30,000 or it drops below 28,000
May 8, 2022 — Peter Brandt (@PeterLBrandt)
It’s unclear what will happen to Bitcoin next, but it’s prudent to expect additional volatility as big global events continue to exert pressure on financial markets.
According to Glassnode,
“Bitcoin is heavily tied to larger economic circumstances, implying that the road ahead may, at least for the time being, be bumpy.”
The total cryptocurrency market capitalization is currently $1.467 trillion, with Bitcoin commanding 41.7 percent of the market.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
The “ethereum price” has fallen to $310. The cryptocurrency market is in a state of uncertainty with traders preparing for a “rocky” road ahead and more downside.
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