The cryptocurrency market experienced significant turbulence during Asian trading hours today, with Bitcoin (BTC) dropping below the $64,000 mark. This decline is part of a broader trend of selling pressure that has affected the entire market. A notable development in this scenario is the heavy leverage being used by traders to buy Bitcoin during this dip.
Is this a good level to buy Bitcoin?
A crypto analyst Ali on X (formerly Twitter) highlighted that these traders have created a notable $30 million liquidation pool near the $63,800 mark. If Bitcoin’s price falls below this level, the pool will be liquidated, leading to further market volatility.
Amid this leveraged trading, Bitcoin whales are also making substantial moves. According to an on-chain analytics firm, Lookonchain reported that a prominent whale recently purchased 244 BTC, valued at $16 million. In total, this whale has added 921 BTC to their holdings, worth $60.6 million, at an average price of $65,821. This buying activity by whales indicates that some major investors remain confident in Bitcoin’s long-term prospects, despite its recent decline of more than 3.4% over the past 24 hours.
Ki Young Ju, the CEO and Founder of CryptoQuant, offered insights into the factors behind the market’s recent movements. He stated that the current downturn is likely driven by market sentiment rather than any external events.
Specifically, he noted that the repayments to Mt. Gox creditors have been completed and that trading volumes on the Kraken exchange are normal. Ju highlighted that any further price drops are likely due to negative market sentiment and continuous sell-offs of BTC and Ethereum (ETH) by large holders and institutions following the approval of a spot Ethereum ETF.
Technical analysis for Bitcoin
Amidst the market’s volatility, some analysts remain optimistic about Bitcoin’s potential for recovery. One analyst pointed out that technical indicators are showing a buy signal on the BTC hourly chart. Bitcoin is currently holding a support level at $63,350 and remains above the 200 Exponential Moving Average (EMA) on the 4-hour chart, a bullish indicator. Additionally, the Relative Strength Index (RSI) is in the oversold region, which also suggests a potential price recovery.
However, the market remains precarious. If Bitcoin fails to stay above the 200 EMA and the $63,350 support level, there could be a significant sell-off, potentially driving the price down to the next support level at $60,300.
As of now, Bitcoin is trading around $64,200, reflecting a 3.4% drop in the last 24 hours, with an intraday low of $63,770. Trading volume has increased by 10%, indicating heightened activity among investors and traders.
