Bitcoin (BTC) price fell below $ 60,000 on April 17th after a strong rally last week in anticipation of Coinbase’s listing on the Nasdaq.
After the COIN listing, which is the ticker of the Coinbase share, the market for cryptocurrencies began to correct itself.
An expected Bitcoin sell-the-news decline
Coinbase’s public listing has drawn a lot of attention to the cryptocurrency market. It was the first public listing of a major cryptocurrency exchange, which resulted in high institutional demand.
As a result, the cryptocurrency market rebounded and led to listing. The BTC price hit new all-time highs above $ 64.00. However, it was almost to be expected that Bitcoin and Ether (ETH) would fall retrospectively, considering that cryptocurrencies tend to sell out after a major event.
Another important factor that contributed to the drop in prices was the relatively high funding rates for the longing for Bitcoin. This, along with strong technical resistance of $ 64,000 to $ 65,000, was the likely reason BTC tested the $ 60,000 support after the hype surrounding Coinase’s listing gradually subsided.
Meanwhile, the $ 60,000 level is a major price point for Bitcoin as it took about a month for BTC to break out of it.
Hence, it is important for Bitcoin to hold the USD 60,000 area in order to maintain the bullish market structure for the next week.
Traders predict what will come next
At the same time, cryptocurrency traders are at odds over where Bitcoin is going with its new weekly candle.
For example, Cantering Clark, a popular cryptocurrency derivatives trader, said the market is not necessarily bullish or bearish based on options data.
Instead, Clark noted that the options market trend shows that Bitcoin would likely see sideways action, which would mean consolidation at around $ 60,000. He wrote:
“50,000 and 80,000 get the highest contract / face value for $ BTC I think these writers will be happy and I still agree that in late April – May the shift will begin making Bitcoin a less favorable long. No breakout, just reach and rotation. “
In the long term, traders are still optimistic about Bitcoin. A pseudonymous trader named “Crypto Capo” noted that due to historical trends, Bitcoin has broken out of a range that goes back 1,000 days.
The dealer emphasized:
“Now some technical analysis of $ BTC. Bitcoin has broken out of an accumulation range of over 1000 days. This usually leads to long extensions. Currently the increase over the previous ATH is only 200%.”