Bitcoin (BTC) fell below $42,000 for the second time this weekend, after failing to break above $43,100 amid subdued trading volumes following the ETF hype late last week.
At the time of writing, BTC was trading at $41,870 on most major exchanges. The price is still above the key support level at USD 40,250; However, selling pressure continues to increase before Asian markets open for trading.
The flagship crypto saw $23.68 million in liquidations in the last 24 hours, of which about 85% were longs – which amounts to $20.11 million, according to CoinGlass. facts.
The liquidations mainly affected traders on prominent exchanges, with Binance and OKX bearing the brunt, with liquidations of $7.51 million and $5.26 million respectively.
Sell the news
The adoption and launch of spot Bitcoin ETFs initially led to a surge in the price of Bitcoin, reaching around $49,000. However, following the excitement, there has been a notable share price decline, partly due to market reactions typical of ‘sell the news’ events.
This type of market behavior often occurs when there is increasing anticipation for an event (such as the launch of ETFs), followed by a rapid sell-off after the actual event.
From a technical analysis perspective, Bitcoin showed signs of buyer exhaustion and increased selling pressure. Analysts observing indicators such as the Exponential Moving Average (EMA) noted that Bitcoin was trading at key resistance levels, indicating a possible price correction.
These technical signals can often lead to a self-fulfilling prophecy as traders and investors respond to them.
ETF issuers are buying the dip
Meanwhile, ETF issuers reportedly bought 23,000 BTC during the recession, while BlackRock accounted for 11,500 Bitcoin. It is unclear whether interest in these products will continue to increase or whether the weekend lull is a harbinger of the coming days.
Experts believe that if these institutions continue to buy Bitcoin at similar levels, it will likely lead to a supply shortage within a few months and could push the price to new highs.
However, the market is wary of outflows from Grayscale’s GBTC ETF, whose holders have been underwater since 2022 and are likely looking for an opportunity to sell now that they are whole.
At the time of writing, Bitcoin is number 1 in terms of market capitalization and so is the BTC price down 2.04% in the last 24 hours. BTC has a market capitalization of $822.13 billion with a 24-hour trading volume of $17.72 billion. More information about BTC ›
Market summary
At the time of writing, the global cryptocurrency market is valued at $1.65 trillion with a 24-hour volume of $48.87 billion. Bitcoin’s dominance currently stands at 49.71%. Learn more >