The price of Bitcoin fell by 9% in four hours due to a combination of negative on-chain and technical factors.
March 15, 2021 | AtoZ Markets – The premier cryptocurrency, Bitcoin (BTC) fell below the $60,000 mark reached on March 14. According to CoinMarketCap, over the past 24 hours, Bitcoin has fallen in price by almost 9%.
At 9:41 GMT, the price reached a local low at around $54,568 on the Bitfinex exchange. However, at the time of writing, the BTC/USD pair was trading at $56,390.
Reasons Bitcoin fell 9% in 4 hours
The Block researcher Larry Cermak noted that in just half an hour there were liquidations for $1 billion.
We've just seen more than $1 billion worth of liquidations in the last 30 minutes. People never learn and keep over-leveraging like crazy.— Larry Cermak (@lawmaster) March 15, 2021
Most liquidations occurred on the Binance and Bybit exchanges.
According to the observations of analysts at Glassnode, the inactive supply of Bitcoin for the last 3-6 months has reached a five-month high.
📈 #Bitcoin $BTC Amount of Supply Last Active 3m-6m (1d MA) just reached a 5-month high of 1,443,142.318 BTC— glassnode alerts (@glassnodealerts) March 15, 2021
Previous 5-month high of 1,443,088.261 BTC was observed on 14 March 2021
View metric:https://t.co/xD7zWV6u5s pic.twitter.com/ze3Fmnb365
This may indicate a revival among investors wishing to lock in unrealized profits from investments in the first cryptocurrency.
Moreover, before the drop occurred, on-chain data analytics platform CryptoQuant pointed out large BTC deposits into Gemini.
Ki Young Ju, the CEO of CryptoQuant, said:
This 18k $BTC deposit is legit as it was a transaction between user deposit wallets and Gemini hot wallet.— Ki Young Ju 주기영 (@ki_young_ju) March 15, 2021
All Exchanges Inflow Mean is skyrocketed due to this deposit. Don't overleverage if you're in a long position.
Chart 👉 https://t.co/oIVOkm5U3a https://t.co/AnK19GINGi pic.twitter.com/fTGS3ucI3e
In addition to the selling pressure from whales, the recent Bitcoin rally being led by stablecoin inflows into exchanges was another bearish sign.
Ki noted that the rally was catalyzed by sidelined capital held in stablecoins rather than institutions in the U.S. He explained:
“Coinbase Premium Index was always significantly high when $BTC price breaking 20k, 30k, 40k, and 50k. It was significantly negative when the price breaking 60k. This 60k bull-run is not US institution-driven, it all came from stablecoins.”
The falling Bitcoin price pulled the rest of the market with it. This is how the top ten most capitalized cryptoassets look at the time of writing:
The capitalization of the first cryptocurrency is $1.05 trillion. BTC dominance index – 60.3%.
Recall that on March 14, the bitcoin price updated its all-time high above $61,000.
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