As Bitcoin threatens to sink under $40,000 for the next for the first time in months, some traders are nervous.
“Trading volume across Bitcoin spot exchanges remains low, according to CoinDesk data,” write Damanick Dantes, and Angelique Chen at Coindesk. “Further, there was no uptick in volume over the weekend despite BTC’s 7% price dip. The chart below shows the ratio of buy volume versus sell volume in bitcoin’s perpetual swaps market (30-day moving average), which is a type of crypto derivative trading product. The ratio dipped below one, suggesting dominant bearish sentiment among Bitcoin traders.”
Meanwhile, gold is up, and the 10-year T-note is up to 2.78% at a three year high.
Azeez Mustapha at Inside Bitcoin reports liquidations of Bitcoin threaten to sink that coin’s price further.
“BTC/USD has declined below the $40,000 psychological price level as Bitcoin risks further decline to $37K,” Mustapha writes. “Bitcoin is currently holding above the $39,000 crucial support. Buyers will attempt to defend this crucial support. Failure to defend the support at $37,000 will lead to further decline. It will generate panic buying and selling below the crucial support level.”
“BTC is in a bearish state,” adds Rajesh Khanna at RecentlyHeard. “Notably, the BTC price lies below 50 MA (short-term) and 200 MA (short-term), so it is completely in a downward trend. Therefore, there is a possibility of a reversal trend of BTC at any time.”
So it might be a dip – or it might be a return to the sub-40 doldrums. Do your research in trading BTC, in wither short term or long term positions. Futures trading is especially risky, and if you’re trading on margin, remember that exchanges are pursuing BTC liquidations at relatively high rates. Ethereum and other coins may be holding steady, but the “big one,” Satoshi’s original crypto coin, is sinking.