Bitcoin Rests After Drop, Tests Buy-The-Dip Narrative – Investing.com
- Date: 22-Apr-2021
- Source: Investing.com
- Sector:Financial Markets
- Country:Middle East
Bitcoin Rests After Drop, Tests Buy-The-Dip Narrative – Investing.com
needs to recoup bullish strength to break above $60,000 again.Key Takeaways
On-chain indicators point to buy-the-dip action from high volume investors during Bitcoin's weekend dip.
However, there appears to be considerable resistance to bulls from a technical and fundamental point of view.
Mainstream adoption, combined with institutional inflows, could help Bitcoin prices stay strong.
The cryptocurrency market has resumed its rally after a weekend shakeout that saw more than More patient traders are testing the validity of buy-the-dip action.
Various Factors Influenced Crash
As the drop comes after 1000% gains in one year, fear around a generational market top is palpable.
At least three factors influenced the cryptocurrency sell-off: possible insider selling by Coinbase executives, a decline in Bitcoin's mining hash rate, and the U.S. Treasury's decision to charge 32 Russian entities for election interference via crypto-related transactions.
Prior to the crash, Bitcoin reached its peak price ($65,000) when Coinbase Global (NASDAQ:) listed its stock on Apr. 14. This could be considered a “buy the rumor, sell the news” event.
A post mortem of the crash revealed a significant inflow of over 9000 BTC to Binance before the crash. Then, cascading futures liquidations forced traders to sell positions, leading to the crash.
On-chain expert Willy Woo later found