Overnight, the price of Bitcoin rose 6.7 percent of $ 35,500 to nearly 38,000. Meanwhile, the futures market budget rate increased sharply, indicating a market with over leveraged.
In large online cryptocurrency exchanges, the budget rate for permanent Bitcoin futures reached about 0.07 percent. Of course, the average budget rate typically varies around 0.01%. But the futures market was too crowded as Bitcoin rose to $ 38,000.
Since several large sales orders of over $ 38,000 entered the market, the price of bitcoin began to fall. Thus, excessive activity in the futures market intensified the correction of the Bitcoin price.
In general, however, the liquidation of $ 500 million in futures contracts is not much compared to last week. In its heyday, Bitcoin also saw $ 1 billion in liquidity from its futures contracts.
BTC weekly chart
What is the next price fluctuation for Bitcoin?
The technical indicators show that if the price of Bitcoin falls further, the next support levels are $ 34,000, $ 32,500, and $ 30,000. On the other hand, for Bitcoin to regain the $ 40,000 level, it must overcome the resistance levels of $ 35,600, $ 36,600, $ 37,150, and $ 38,000. Bitcoin is currently trading at $ 35,285, down 7% from the past 24 hours.
Of course, the recent drop in the price of bitcoin has not reduced the open interest rate of the futures market and the retreat of traders. Many traders continue to bet on Bitcoin in the futures market, which increases the likelihood of another buying push.
Bitcoin price on January 19, 2021, is 37,225.06 USD. It has a trading volume of 57,259,255,301 USD within 24-hours.
Bitcoin chart history
Will the falling of bitcoin price continue to fall again?
A well-known social media trader believes that if the price of Bitcoin falls below $ 30,000, the digital currency will enter the bear market. Therefore, in the short term, maintaining the $ 30,000 level as the main support level for Bitcoin is important.
Also, Ki-Young Ju, CEO of Analytics CryptoQuant Company, said that open market interest rates are still rising. On the other hand, the signals within the chain indicate the demand of buyers. These demands have been stagnant in the past few days. According to Yang Joo, given the high activity of the derivatives market and the downturn in the buy signal. The current market situation is uncertain and Bitcoin may test the level of $ 30,000 again.
Traders of Binance, the largest open market in terms of open interest rates, reportedly used lower leverage last week. It indicates an increase in the level of fear in the market and uncertainty in the short-term trend of Bitcoin prices. However, some traders are still optimistic about the bitcoin price trend in the medium term. They believe that the current $ 40,000 pullback was not only expected but necessary to create a healthy market.
Polkadot and Cardano rank in the market
Has the growth of altcoins reduced bitcoin dominance in the market?
The price of Bitcoin fell to less than $ 35,000 for the second time in recent days. The situations of most altcoins are also red. But Cardano’s dramatic growth (ADA) and record-breaking (DOT) records have reduced Bitcoin’s dominance in the market. Bitcoin dominance has reached about 66.5%.
Polkadot, in its last bullish rally, managed to set another record above $ 19. On a weekly basis, Polkadot has grown by more than 83%. Even Polkadot has surpassed Ripple (XRP) to become the fourth-largest digital currency market.
Cardano is currently trading at $ 0.37, up about 10 percent over the past 24 hours.