We Faced With 3 Reasons When Bitcoin Fell 6% in 4h : First Of All, When a new weekly candle opens, Bitcoin typically sees large volatility because the trend on Monday could dictate how Bitcoin performs throughout the rest of the week. Rekt Capital : "BTC has pulled back towards the red area and even overextending below it — for now. The day is still young so price could still resolve itself relative to this red boxed area and turn it into support. Technically, BTC is in the process of a volatile retest."
If Bitcoin fails to rebound from the $55,000 area, the trader warned that a steep correction to the $46,700 support level becomes a possibility.
Moreover, When the price of Bitcoin began to drop, the futures market funding rate of BTC was hovering above 0.1% across major exchanges. This indicates that the overwhelming majority of the market was longing or buying Bitcoin, making it an overcrowded trade. Michaël van de Poppe : "Bitcoin barely holding on to this critical level here. Needed for upwards continuation, otherwise, price drops back into the range."
Last but not Least, Before the drop occurred, on-chain data analytics platform CryptoQuant pointed out large BTC deposits into Gemini. Gemini is a leading Bitcoin exchange in the United States alongside Coinbase and is often regarded as a "whale exchange." Ki Young Ju : "Coinbase Premium Index was always significantly high when BTC price breaking 20k, 30k, 40k, and 50k. It was significantly negative when the price breaking 60k. This 60k bull-run is not US institution-driven, it all came from stablecoins."
In addition to the selling pressure from whales, the recent Bitcoin rally being led by stablecoin inflows into exchanges was another bearish sign. Which Is considered as Large exchange deposits and stablecoin inflows
Very strong analysis. I’m interested to see how the 55k responds. Today it seems to be holding but agree that the week is still early. Increased deposits on Binance indicates more retail money is flowing into the market. Hopefully a correction to a lower level will be buoyed by this money leading to the next test of the ATH
Satoshi-SK
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@dmas1000 totally agree, 55k respond is crucial, Although I must admit nothing is absolute.