In this one of the latest blockchain magazine, you will get to know all the weekly updates regarding the market. Bitcoin had reached a market capitalisation of about $779 billion on January 8 and from there it plunged to a market cap of $583 billion on January 11. Some of the main reasons that may have caused this fall could be profit booking by the miners, who sold their inventory. Even institutional investors who may have entered crypto markets from a short-term perspective and had purchased at lower levels could have been tempted to book profits after the sharp rally of the past few days.
As the price turned down, these leveraged positions could have generated margin calls, resulting in liquidation by the brokers at the market price. This further intensified selling and drove the buyers away who avoided buying until the selling exhausted. Vertical rallies are followed by sharp falls but the strong rebound suggests accumulation at lower levels. However, after large volatile moves, the crypto markets may enter a lull period as both bulls and the bears try to establish their supremacy.
OUR BLOG ARTICLES FOR THIS SPECIAL ISSUE ARE:
THE FUTURE GROWING TRENDS OF CRYPTO EXCHANGES IN 2021
TOP CRYPTOCURRENCIES WHICH WILL EXPLODE IN 2021ALL
HOW THE BLOCKCHAIN REVOLUTION CAN WORK FOR YOU – THE QUIVERX APPLICATION
Bitcoin has been in a strong uptrend that pushed the RSI deep into overbought territory. This suggests that traders are buying at every higher level due to FOMO.
We had projected a target objective of £31,399 in our previous analysis and Bitcoin rose to an intraday high at £30,936 on January 8. We had also mentioned that the RSI is in overbought levels and such markets can turn around quickly. We saw an example of that on January 11 when the BTC/USD pair plummeted below the 20-day EMA and fell to an intraday low at £21,000. The bulls aggressively purchased the lows, which is a positive sign as it shows strong demand at lower levels.
If the bulls can build upon yesterday’s recovery, the pair may again gradually attempt to move up to £30,000. However, the possibility of the uptrend resuming is low. The higher levels are likely to attract selling by traders as many may want to book profits. If the pair fails to break out to new highs, the selling is likely to intensify and that could again pull the price back towards £20,000. The pair could remain range-bound for a few days before starting the next trending move. We do not find any reliable setups that offer an attractive trading opportunity.
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LATEST BITCOIN NEWS MAGAZINE FOR
FEATURING IN THIS WEEKS EDITION
BITCOIN ERASES MOST OF NEW YEAR’S GAINS AMID SHORT-TERM PROFIT TAKING
Bitcoin’s prices have surrendered much of 2021’s eye-popping gains in an equally breathtaking plunge, a drop traders and analysts said was mostly due to short-term profit taking by some institutional investors.
ANALYSTS SAY BITCOIN PRICE DROP TO $30K WAS ‘HEALTHY AND NECESSARY’
The total cryptocurrency market cap fell by more than $200 billion as Bitcoin price dropped to $30,229 and altcoins correctly sharply.
AS BIDEN PREPS $3T STIMULUS, BITCOIN COULD BE SET TO ERUPT
Biden’s fiscal stimulus plan could send the BTC price rocketing higher. The incoming Biden administration’s plan to flood the U.S. economy with trillions of dollars could ignite the next leg of the Bitcoin (BTC) bull market, as more investors seek refuge from a crumbling
United States dollar.