Bitcoin (BTC) suffered another sharp decline earlier today (March 28), with the bears pulling the price from $ 6,700 to $ 6,050 in just minutes. This dump was accompanied by an increase in open contracts on BitMEX.
The fact that the king lost nearly 10% today triggered the liquidation of $ 34 million Dragon Longs on the cryptocurrency derivatives exchange BitMEX.
As mentioned in a previous article, Bitcoin price dropped due to the formation of a rising wedge on the charts. It is possible that in the coming days prices will drop below US $ 6,000, and even down to US $ 5,500 or US $ 4,000 as some analysts have pointed out.
The basis for the sharply declining BTC was pointed out after two tracks, positive before March 28 and negative at 3:16 UTC today. The negative decline in the base is due to the price drop on Coinbase compared to BitMEX, which has caused an imbalance.
Moreover, the number of open positions also saw a significant increase from $ 370 million to $ 400 million overnight, something that could explain the sudden activity in the price of BTC.
This discount has been overdue for quite a long time. Further price movements will be interesting as this will determine how the upcoming price drop will take place. The March 12 dump was extremely intense for Bitcoin, however, the stock market also recorded the most dramatic drop in history - losing 34% so far has made matters worse. for the global economy.
At the time, Bitcoin had a correlation with the S&P 500, but since then, the correlation has been severed and Bitcoin is back on its own.
Moreover, since fateful Dark Thursday, institutional investors seem to have fled the cryptocurrency market; CME and Bakkt's open contracts have run out to record levels. In addition, the formation of a sign of death to the Bitcoin spot price implies a major bearish scenario for this currency in the near future.
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According to TapChiBitcoin / AMBCrypto