Categories: Market

Bitcoin strong correction – Bitcoin, crypto situation

Bitcoin and US stocks both fell

Bitcoin price fell sharply in a short space of time yesterday. The price fell from $ 57,000 to $ 42,800. Compared to the high of $ 69,000, this is 38% price-adjusted. The top 10 altcoins didn’t fall as much as BTC, however. Over the past week, Bitcoin is down more than 8%, but ETH is still up 1.2%.

In the short term, the price of BTC will initially be influenced by the entire financial market. The epidemic situation of the new variant with many infections in the USA continues to give cause for concern. Not just crypto, stocks for the past 5 days are still trending down.

The US employment report also showed negative numbers. The United States created 210,000 new jobs in November, despite companies taking more aggressive steps in hiring, a disappointing increase showing the worst labor shortage in decades. Many employees enjoy social benefits, so they do not go to work and new jobs are also regulated with higher wages.

The job growth was the lowest this year. It was much lower than Wall Street expectations. Economists polled by the Wall Street Journal had forecast 573,000 new jobs.

Employment issues, as well as the impact of the epidemic, will also affect the decisions of the upcoming Fed meeting. The Fed is currently still supporting the market by buying bonds to push money into the market. Perhaps the FED will tighten cash flow in the near future as the economy gradually stabilizes.

In addition, Evergrande has a higher risk of default. The company’s $ 310 billion debt also paid off the interest. However, the company may not be able to pay for the upcoming $ 400 million profit. The Chinese government has made an appointment with the CEO of this company.

This information only has an indirect impact on crypto as Evergrande is already at risk of failure. The big impact on crypto prices still comes mainly from the epidemic and the impact of Fed policies on the economy.

On-chain analysis

At the same time, the rapid drop in prices led to a long squeeze that pushed the price down further. Data from glassnode shows that up to $ 1.36 million long positions were liquidated within 10 minutes. Up to $ 1.36 billion in futures contracts were liquidated within 1 hour and up to $ 2.33 billion within 24 hours. This is the largest liquidation Bitcoin has ever seen since the beginning of September.

The Fear and Greed Index is already at the extreme fear level. However, the price of BTC fell, but there were no investors selling altcoins in BTC. BTC capitalization decreased, but altcoin capitalization increased slightly.

This liquidation of futures orders has reduced the number of futures orders in the market. Recently, the on-chain indices have all adjusted to the decline in BTC price, but the number of future orders in the market has not.

The percentage of BTC profitable also fell to 78.8%. The amount of BTC withdrawn from the exchange in the past two days is still lower than the amount deposited on the exchange. The amount of BTC sold may already be on the floor. However, from November 29 to December 3, a relatively large amount of BTC was pushed onto the exchange.

If the price goes down, we don’t see any sign that the miners are selling. Selling power continued to come mainly from short-term investors.

Short term investors will find that the market fluctuates a lot. But if you look at it longer term, with BTC from 2011 to today, these corrections are very small compared to the growth over the years.

Thuan is still pursuing a long-term average investment strategy with both crypto and the stock market. To implement this strategy, Thuan firmly believes in the long-term development of BTC. A specific strategy, the averaging of the input prices and the average output prices and the constant reminder of their investment goals help investors to be more stable in the event of short-term fluctuations.

► synthetic

Coincu

Recent Posts

A Missed Moment with Cardano? Here’s Why Qubetics at $0.0212 Could Be Your Perfect Timing – Explore the Best Crypto to Join Now

If you’ve been regretting missing out on Cardano, Qubetics ($TICS) might just be the ticket…

26 minutes ago

Shiba Inu Price Clears Path To New ATH Of $2 As WallitIQ (WLTQ) Takes The Lead With A 23,000% Surge

The Shiba Inu price is on track to reach a new ATH of $2, while…

26 minutes ago

Best Crypto Presales to Watch This November: Get in Early on These Potential Breakout Coins

So, you’re on the lookout for the next big thing in crypto? Aren’t we all?…

4 hours ago

Robinhood Crypto Now Supports Solana Trading Again

Robinhood Crypto has expanded its U.S. platform with the addition of Solana, Pepe, Cardano, and…

9 hours ago

Missed Out on Chainlink Early Gains? This Layer-1 Project is Set to Explode to $15 After Mainnet Launch

If you’ve been following the crypto space, you already know that Chainlink (LINK) has been…

9 hours ago

This website uses cookies.