Bitcoin’s fall takes investors on a wild ride: bulls and bears run away
- BTC briefly traded below the $20,000 price level on March 10, prompting significant long liquidations.
- On the daily chart, increased coin sales were detected.
In the early trading hours of March 10, Bitcoin [BTC] briefly traded below the $20,000 price level for the first time in seven weeks, prompting market-wide liquidations.
According to data from CryptoRank$422 million in long and short positions were liquidated from leading derivatives exchanges, with 86.2% of liquidated positions long.
Source: CryptoRank
While BTC retook the $20,000 price level and was trading at $20,662 at press time, pseudonymous CryptoQuant analyst Crazzy Blockk found that the momentary decline in the royal coin’s price caused it to test the realized price of $19,700.
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According to the analyst, “maintaining this level is necessary for the still positive outlook of the market.” This is because a sustained drop below this level could indicate a significant loss of value for BTC holders.
Source: CryptoQuant
The bulls and bears gobble it up in the open
The sharp drop in BTC’s price on March 10, which is currently trading at a five-week low, did not deter whales from further accumulating the royal coin.
According to Twitter analyst WuBlockchainon the same day, several BTC whales were spotted buying call options with a strike price of $25,000 in the April expiration and selling the same strike call options for the June expiration.
In the options market, there has been a large number of calendar spread transactions consisting of large calls in the last hour, mainly concentrated in: BTC-25000-C buy April and sell June; ETH-1600-C buy April and sell June. @GreeksLive said this could show confidence in… pic.twitter.com/aGW8ZfqrUf
— Wu Blockchain (@WuBlockchain) March 10, 2023
Opposite, CryptoQuant analyst Baro Virtual assessed BTC’s Vortex Indicator (VI) and found that “the bears’ positions began to strengthen on March 2, 2023, and continue to strengthen until now.” According to the pseudonymous analyst, BTC bears remain relentless with distribution despite some cooling periods.
Baro Virtual advised investors to trade with caution, warning:
“For now, seller exhaustion may not happen because the domino effect due to the collapse of FTX is not yet over, and the White House and other US government financial institutions are trying to kick Bitcoin in every possible way. In short, uncertainty is returning to the crypto market again .”
Source: CryptoQuant
Redder in the coming days?
According to data from Coinglass, BTC has seen a significant drop in open interest over the past 24 hours. At the time of writing, the coin’s open interest stood at $8.834 billion. For context, the coin’s open interest has fallen 19% in the past 10 days.
Source: Coinglass
On a daily chart, increased coin distribution has forced key momentum indicators to lie below their neutral lines. For example, oversold at press time, BTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 30.52 and 29.08 respectively.
Read Bitcoin [BTC] Price prediction 2023-24
Chaikin Money Flow (CMF) was also placed in a downtrend of -0.06, below the center line. This was a bearish signal as it meant that selling outweighed buying, thus projecting a further decline in BTC’s value.
Source: BTC/USDT on TradingView
