Bitcoin falls below key support level, potentially triggering 8%-12% correction:
We might see more downtrend...
Bitcoin has fallen through a key price support that could signal an 8%-12% correction, potentially leading the price to decline towards $60,000
Traders closing their basis arbitrage trades have led to a significant decline in futures market activity and increased downside pressure for bitcoin, an analyst added.
According to an analyst, further downside pressure on bitcoin is coming from the unwinding of basis trades, where traders exploit the price difference between the spot market and futures contracts. The unwinding of these trades can lead to a significant sell-off in the spot market, contributing to a decline in bitcoin's price.