On-chain data says “If Bitcoin goes below $ 51,000, it’s okay”

Bitcoin (BTC) price fell to $ 50,400, affected by the expiry of the $ 6.1 billion option contract as of today.

The decline did not come as a surprise to many traders, and some experts suggested that the $ 47,000 support level could be tested. Although Bitcoin loses its short-term bullish momentum, various derivative indicators, including futures premiums, suggest the price will not drop below $ 50,000.

4-hour chart of the BTC / USDT pair. Source: TradingView

While technical indicators offer mixed results for Bitcoin’s short-term price action, the digital asset climbed back to $ 52,000 levels. Leading asset funds are said to continue to open BTC positions.

Analysts point to “oversolding”

Glassnode co-founder and CTO Rafael Schultze-Kraft recently highlighted a drop of between $ 51,100 and $ 54,000.

He sent after the fall on Thursday tweetSchultze-Kraft stated that he did not evaluate the decline as “unexpected” and that the overall picture is still on the upside.

Schultze-Kraft said:

“Structurally, nothing has changed. I haven’t seen any data indicating a long-term decline yet.”

Bitcoin’s highest declining liquid supply in more than 6 months provides evidence of a possible reversal in the near term.

Bitcoin liquid supply change. Source: Glassnode

This indicates that a large number of BTC has withdrawn from the circulating supply, the bulls are preparing for the price to rise, making transfers to cold wallets for long-term investment.

Altcoins see lower dips

Most of the altcoins have been heavily affected by the Bitcoin sale, while traders in the market are exiting positions to protect their final gains.

Daily cryptocurrency market performance. Source: Coin360

One of the prominent altcoins was Aragon (ANT), which led the rise in decentralized finance (DeFi) and non-fungible tokens (NFT).

Holochain (HOT) and Balancer (BAL) also gained 5.2 percent and 6.4 percent, respectively.

The total value of the cryptocurrency market is currently $ 1.62 trillion and Bitcoin’s dominance rate is 59.4 percent.

The opinions and comments expressed here belong only to the author. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

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