It was a tough day for crypto bulls as the price of almost all of the top 50 cryptocurrencies is in the red on a 24 hour scale. The same is true for Bitcoin.
The price of BTC plunged to an intraday low of $ 58,500 on Bitstamp, but has since recovered to around $ 60,100, where it is currently trading. Still, it has fallen almost 8% in the past 24 hours, falling below the important $ 60,000 level.
Well-known on-chain Bitcoin analyst Daniel Joe doesn’t seem overly concerned and attributes the current drop to several things.
First of all, before drawing any serious conclusions, he noted that we need to see where the BTC price will end. The 50 day MA has been tested, but the buyers have stepped in decisively and we are currently seeing a rebound in the recovery.
This decline can be interpreted as an intra-week drop below $ 64.8,000, which was the previous record. As it stands, however, it remains particularly important for the price to rise above that level for the weekly close.
The main support levels are located at $ 60,000, $ 58.7,000 and $ 57.1,000.
From a chain perspective, Joe notes that there hasn’t been any aggressive distribution from long-term holders today. Miners also do not sell this fold in an aggressive manner.
Spot entries edged up today, which also led to a somewhat higher trend in reserves – a potential sign of caution in the near term. However, the analyst remains optimistic in the medium to long term and sees this as a buying opportunity.
I buy the BTC trough between $ 60,000 and $ 57.1,000. There is some near-term uncertainty, but the macro bullish trend in BTC has not changed (bullish over this decade). I seek to protect and grow multigenerational wealth. I am delighted to see dips, small or large. – He Remarks.
Still, it’s also worth noting that Joe waved a worry flag.
The 3-5 year old, 18-2 year old, and 12-18 month BTC cohort was evenly distributed during the withdrawal. Not ideal to see, especially with the prices coming down. Lots of long BTC are being liquidated today, with an intraday drop below $ 60,000.
The analyst also noted that some of the reasons for the current pullback include the liquidation of leveraged long positions, the rising dollar, high overall leverage, stocks meeting major technical targets, overbought conditions, as well. that fear of the distribution of Mt. Gox.
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