The fall in the price of Bitcoin (BTC) has accelerated over the past 24 hours. After losing momentum at $19,500 on Wednesday, the flagship cryptocurrency plunged below $18,000 to $16,438 at around 08:51 GMT on Bitstamp.
The chart below shows a downward price movement supported by volumes:
Bitstamp’s 4-hour BTC/USD chart from TradingView.
Moreover, the price of much cheaper, but popular cryptocurrencies including Ethereum and XRP have also recently plunged.
Top 10 Most Capitalized Crypto Assets. Data: CoinGecko.
Against the background of the market correction, the volume of liquidations of long positions on popular exchanges approached $900 million.
Data: coinalyze.net
There is also an increase in the inflow of funds to trading floors.
All Exchanges Inflow Mean increased a few hours ago.
It indicates that whales, relatively speaking, deposited $BTC to exchanges.
But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.
Chart ? https://t.co/mL1j2ZqVf8 pic.twitter.com/6ErmJHrS4v
— Ki Young Ju ??? (@ki_young_ju) November 26, 2020
It is worthy of note that several analysts had already warned that the recent gains were due for a pullback. For example, CNBC “Fast Money” host Brian Kelly and trader Tone Vays, on Tuesday forecast a price decline to the $14,000 level.
Commenting on the Bitcoin price drop, Key Yong Joo, CEO of CryptoQuant said:
This indicates that the whales actually deposited bitcoin on exchanges. However,
long-term on-chain indicators indicate that buying pressure is prevailing. I still believe that we can get past the $20,000 mark in a few days.
Coin Metrics analyst Lucas Nuzzi also sees a positive in the fundamentals and growth prospects of the first cryptocurrency.
We might look back at 2020 as the de-facto year Bitcoin became Digital Gold.
The median age of bitcoins outstanding is at an All-Time-High, showing a strong hodl base.
At the same time, velocity is the lowest it's been since 2011, showing hodlers' reluctance to spend their BTC. pic.twitter.com/M6AQNu2J99
— Lucas Nuzzi (@LucasNuzzi) November 25, 2020
The median age of Bitcoin in circulation is at an
all-time high, indicating a significant number of hodlers. At the same time, the speed of circulation of coins is at its lowest level since 2011. It speaks about the unwillingness of Hodlers to spend their money.
Recently, EarnForex reported that the price of bitcoin broke through the level of $19,000 against the background of a record trading volume on exchanges.
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