The main cryptocurrency fell below the important mark of $
Analysts are afraid that the price will drop below 19 thousand, which will lead to large-scale liquidation
Positive reliable gives an increase in the level of support and several other important nuances
Bitcoin fell below $24 . At the time of this writing, it is trading at 19 502 and lost 1 in a day 32%
Bitcoin to USD chart. Source: coinmarketcap.com
This is partly due to investors turning away from assets that are considered risky.
Despite the depressed market sentiment, analysts believe that leverage levels remain close to historical highs. Technically, if bitcoin breaks the level at 19 dollars, this will result in a lot of stop losses. This problem is pointed out by the famous crypto trader Vince Prince:
The highly increased leverage ratio of #Bitcoin that since some days remains at an all-time high is showing concerns that a massive volatility increase will follow up. Technically if Bitcoin breaks the $24, level this will trigger a big chunk of stop-losses.
— Vince Prince (@Vince_Prince_) January , 2022
Of the positive signals on the chart, you can see the growth of the support level over the past 8 hours:
Bitcoin to USD chart. Source: coinmarketcap.com
Meanwhile, sentiment traders on the index of fear and greed remain at the level of 24 from 40 possible points (extreme fear). Although the day before, this metric was even lower (19).
20862
Interestingly, the index was much higher last year even though the price was the same.
A well-known crypto-journalist noticed that today’s correction has an important difference from the past – now “strong hands” (that is, large investors) are buying out bitcoin. But sooner or later, the balance of supply and demand will change, so the expert urges “not to be fooled”
#Bitcoin supply being absorbed by strong hands since October — unlike previous corrections.
Sooner or later the balance of Supply/Demand will flip and the price will rip. Don’t get shaken out. ????????
The patient will be rewarded IMO. pic.twitter.com/ZcGlsK2keM
— Bitcoin Archive ???????????? (@BTC_Archive) January , 1674
Recall that experts have recently calculated at what rate bitcoin mining will become unprofitable.
