Well, the broader cryptocurrency market has entered its second day of huge drop, with Bitcoin in the red. Despite the fact that Bitcoin has dropped 47 percent from its all-time high of $69,000, here’s why we think it’s still a good idea to wait and purchase the dips.
Despite Bitcoin’s sharp correction over the last week, open interest in Bitcoin futures remains high. We may not be done with the correction until the Bitcoin OI goes neutral or negative, according to historical tendencies.
Bitcoin has also produced a daily closing under $36,5000 levels on the technical chart. Since July 25, 2021, this is the lowest daily closing. Bitcoin has closed below the 0.789 FIB, according to the Twitter account BTC Ninja. As a result, we should expect additional agony if Bitcoin drops to $33,000 or even lower.
During this current slump, bitcoin miners have been massively accumulating. Miners have amassed more than 6000 BTC in the last two weeks as BTC has corrected from $45,000 to $38,000, according to data.
However, we are presently extremely near to the $34,000 BTC miner production cost. We can expect heavy selling and surrender from Bitcoin miners if the BTC price continues to decline. When Bitcoin reached around $42,00 last week, verified said crypto analyst venture founder in his latest tweet.
In tandem with Nasdaq
We know that the current crypto correction has coincided with a bigger sell-off in the stock market in the United States. Will Clemente, a well-known market expert, writes:
“This week Bitcoin’s correlation to the Nasdaq reached an all-time high. With no catalyst to cause idiosyncratic flows to BTC, for the time being, it is just following risk-off behavior from equities with a high beta.”
The S&P 500, on the other hand, has broken below its 200-day moving average. As a result, further liquidations in the crypto space may occur, perhaps causing a Ripple effect in the crypto market. Altcoins, like Bitcoin, have experienced a harsh correction.