Well, the broader cryptocurrency market has entered its second day of massive declines, with Bitcoin in the red. This is why we think it’s still a good idea to take the plunge and buy, despite the fact that bitcoin is down 47 percent from its all-time high $69,000.
Despite bitcoin’s sharp correction over the past week, open interest in bitcoin futures remains high. Going by historical trends, we may not be done with a correction until the Bitcoin OI turns neutral or negative.
Bitcoin also made a daily close below the $36,5000 level on the technical chart. This is the lowest daily closing since 25 July 2021. According to Twitter account BTCNinja, bitcoin closed below 0.789 FIB. As a result, we should expect additional pain if Bitcoin breaks to $33,000 or so.
During this current recession, bitcoin miners are accumulating massively. According to the data, more than 6000 BTC have been deposited by miners in the past two weeks as BTC corrected from $45,000 to $38,000.
However, we are currently very close to the $34,000 BTC miner cost of production. If the BTC price continues to drop, we can expect a massive selloff and capitulation from bitcoin miners. When bitcoin hit nearly $42,000 last week, Verified said the venture founder, a crypto analyst, in his latest tweet.
in association with nasdaq
We know that the current crypto correction coincided with a major sell-off in the stock market in the United States. Renowned market expert Will Clemente writes:
“Bitcoin’s correlation to the Nasdaq hit an all-time high this week. With no catalyst to cause typical inflows for BTC, it is simply following a risk-averse behavior from equities with high betas.”
On the other hand, the S&P 500 has broken below its 200-day moving average. As a result, there could be more liquidations in the crypto space, perhaps creating a ripple effect in the crypto market. Altcoins like bitcoin have experienced drastic corrections.