During a volume peak, the Bitcoin fell to $40,700 in the last hour of this Sunday (10), one of the biggest drops since the start of the rally. Although he recovered the $42,000 shortly afterwards, the fighting in the region is fierce.
Other cryptocurrencies joined this rollercoaster and are trading lower this Monday (11). The second largest on the market, Ethereum (ETH) is operating at a daily decline of 5.3% as losses out Cardano (ADA) be greater than 9%.
The result is that more than R$2 billion worth of orders have been fulfilled in the past 24 hours. Of this number, more than R$1.7 billion consisted of longs (purchased positions) and another R$275 million consisted of shorts (sold positions).
Bitcoin tests $40,000 support and bulls try to find solid ground
Apparently, there is no specific reason for Bitcoin’s recent decline. It could just be traders taking profits as the annual increase reached 170%.
However, it is worth noting that gold has lost 7.6% of its value since last week. At the time, as it reached its all-time high, the metal rose as the market estimated that the Fed would be willing to cut rates. Other currencies, stocks and Bitcoin also rose.
Therefore, the market may have retreated ahead of the next Fed meeting, scheduled for next Wednesday (13), as well as the release of data from the US inflation index, called CPI, next Tuesday (12). In other words, the market is cautious and this may have led Bitcoin to test the $40,000 support.
Shortly afterwards, Bitcoin was back above $42,000, a region that could be an important support if the bulls want to continue this rally.
Other cryptocurrencies are also falling
As is already logical, the fall of Bitcoin also caused other cryptocurrencies to collapse in the early hours of this Monday (11). The highlights are Ethereum (ETH) and Cardano (ADA), with declines of 5.3% and 9% respectively, but the decline was general.
Ripple (XRP) and Solana (SOL) are two other giants showing losses. Among the few that are on the rise are BinanceCoin (BNB), Avalanche (AVAX), Optimism (OP), and Injective (INJ).
The settlements exceed R$2 billion
Since the decline in Bitcoin and other cryptocurrencies was somewhat unexpected, many traders were caught off guard. In total, the settlements amount to more than R$2 billion, the majority of which concern long positions. The biggest losses were in Bitcoin and Ethereum.
According to CoinGlass data, $350 million (R1.7 billion) of the liquidations were longs, but even the bears lost money after prices recovered. About US$55.7 million (R275 million) worth of shorts have been liquidated in the past 24 hours.
Regardless of the correction, Bitcoin has everything to continue its rise throughout the month of November. The reason is the possible approval of ETFs as early as January next year, something that many investors see as a turning point for the world’s largest cryptocurrency.
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Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
