As the weekly candle opened on March 15th, Bitcoin (BTC) was surprisingly dropping up to 6% in less than four hours. Crypto enthusiasts attempt to decipher the reasoning for such a swing in which it is believed three factors contributed significantly to hinder Bitcoin’s momentum upwards. New open monthly, strong funding costs and stablecoin inflows.
Bitcoin will generally experience high volatility when a new weekly candle opens, many are awaiting the pattern on Monday to indicate how the coming week looks for Bitcoin.
As was recently stated by anonymous investor “Rekt Capital”, Bitcoin has in the last few hours witnessed an extended period of down trading. The trader speculated that Bitcoin could be heading towards an era of a “volatile reset”.
Recovery for Bitcoin onwards from the $55,000 mark could be tough. “Rekt Capital” suggested that if support could not be found a significant dip could occur, whilst speculating that hard-line support would back the asset in the $46,700 region.
Bitcoin futures markets have seen ever increasing liquidations since the downtrend. According to a report by Bybt.com 194,541 futures traders have been liquidated to a value of $1.83 billion within 24hours, the largest liquidation numbers since February 2021. With the number of liquidations, the damage to Bitcoin would possibly see a downturn to $57,000. Michael van de Poppe, Analyst for Cointelegraph describes as crucial level for support.
Gemini, one of the largest cryptoasset exchanges in the United States, is often used as a ‘whale’ exchange. On-chain data analytics tool CryptoQuant displayed, that prior to the decline in price of Bitcoin, there were larger deposits into the Gemini exchange.
Chief Executive Officer of CryptoQuant, Ki Young Ju, said “This 18k $BTC deposit is legit as it was a transaction between user deposit wallets and Gemini hot wallet.”
Significant stablecoin deposits have reached exchanges, an indication that suggests bears are willing to challenge the bull’s recent dominance of Bitcoin markets.