Bitcoin falls beneath the $50,000 as the support line is hitting its lowest point in 48 days.
The price of the bitcoin fell from $54,900 to $51,500 on Thursday. According to Bitstamp exchange data, it happened before the markets experienced another sell-off to $48,300. According to CoinDesk’s bitcoin price page, prices are currently around $49,200, representing approximately an 8% loss of about $4,300 over the previous 24-hours.
CEO of South Korea-based blockchain analytics company CryptoQuant, Ki-Young Ju, told CoinDesk that they are still in a long-term bull market as on-chain data suggests. He added that in the short-term, they might have a correction. They might also go sideways in a broad range since the market is over-heated between retail investors.
Bitcoin is on track to close out its most significant weekly drop since February when prices fell 21%. It happened before making a sharp recovery and breaking to all-time highs near $65,000.
According to technical analysis theory, a loss of the 100 daily moving average at around $49,400 may open up steeper losses to approximately $46,000.
Overview of The Crypto Market
Other cryptocurrencies also experience strong sales with XRP and ether, both down 14% and 6%, respectively, while binance coin is down 5.9%. Indeed, almost all of the assets in the CoinDesk 20 have fallen in price over the last 24 hours. We must mention that the 20 cryptocurrencies make up the crypto market’s huge share at eight significant exchanges.
On the other hand, some analysts have said that the Chinese coal mining accident caused a violent drop in Bitcoin’s hash rate. Willy Woo has the same idea about this fact. This event may also have reduced the Bitcoin network’s processing power by 20%. Besides this event, there is an electricity outage in China’s Xinjiang region. And overall, it exposed its heavy dependency on coal-driven energy.
While critics jumped in to bash Bitcoin, Carter points out that Bitcoin mining is portable and concentrated in areas where electricity is cheap and unused.
Moreover, Bitcoin mining can be fully powered by clean energy. At the same time, the gold industry is diesel energy-dependent and environmentally destructive. Bitcoin miners’ portability allows the use of gas resources and previously wasted oil, unlike precious metals.
Major cryptocurrency exchange provides data on its top traders’ long-to-short net positioning. Analyzing clients’ consolidated positions calculated this indicator on the margin, spot, and futures contracts. It provides a brighter view of whether professional traders are leaning bearish or bullish.