Due to the increasing chaos and global panic in the markets, bitcoin continues to quickly lose its position and is already trading at $ 5000.
After yesterday’s collapse to $ 6,000 the bulls managed to stabilize the situation only for a short time, because tonight there was another recession, during which the BTC exchange rate was below $ 4000 for some time. However, then the price bounced and at the time of publication, the price of bitcoin is $ 5088, having lost 32.05% over the last 24 hours.
EXANTE analyst Viktor Argonov believes that the final phase of the fall below $ 5800 was price manipulation on the part of large players, but the rebound from $ 3800 is most likely associated with breaking through the mining profitability border. When At a BTC rate below $ 4000, coin mining becomes unprofitable almost everywhere, which reduces the number of sellers. Since this is known to most large traders, they do not expect a significant drop in Bitcoin below this level, but a breakout for them is a clear signal to buy.
Despite being clearly oversold, the current indicators do not bode well for dramatic changes in the short term. A confident rebound can be expected only after the macroeconomic panic subsides and the stock market exits the free fall regime. Until then, the cryptocurrency market will follow the general trend. Nowadays, even gold has begun to lose ground..
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However, the massive sell-off has drawn the attention of retail investors to Bitcoin’s undervalued price. According to Glassnode, the number of wallets that hold more than 1 BTC continues to grow, and during the sale increased to a record 795 630 units. The number of users with more than 10 coins in their hands also continues to grow steadily..
The company’s experts say that such dynamics may indicate an increase in interest from retail investors who decided to take advantage of the collapse ahead of the halving and buy cryptocurrency at a low rate..
text: Ivan Malichenko, photo: Shutterstock, charts: TradingView, Glassnode