The price of Bitcoin (BTC) fell below $ 60,000 on April 17 after a strong rally over the past week in anticipation of Coinbase’s public listing on the Nasdaq.
However, after the COIN listing, which is the symbol for Coinbase stock, the cryptocurrency market started to correct itself.
Bitcoin News Selling Expected Drop
Coinbase’s public listing has drawn special attention in the cryptocurrency market. It was the first public listing of a major cryptocurrency exchange, resulting in strong institutional demand.
As a result, the cryptocurrency market rallied ahead of the listing, with the BTC price hitting new all-time highs above $ 64.00. However, Bitcoin and Ether (ETH) were almost expected to fall after the fact, given the tendency for cryptocurrencies to sell off after a major event.
Another major factor that has contributed to the price drop has been the relatively high funding rates for Bitcoin. This, along with strong technical resistance of $ 64,000- $ 65,000, were the likely reasons BTC tested $ 60,000 support after the hype around Coinase’s listing started to fade.
Meanwhile, the $ 60,000 level is an important price for Bitcoin, as it took BTC around a month to break above it.
Therefore, it is important for Bitcoin to hold the $ 60,000 area to maintain the bullish structure of the market as we approach next week.
Traders predict what would likely come next
At the same time, cryptocurrency traders are mixed on where Bitcoin is going with its new weekly candle.
For example, Cantering Clark, a popular cryptocurrency derivatives trader, said the market is not necessarily bullish or bearish, based on the options data.
Instead, Clark noted that the trend in the options market shows that Bitcoin would likely see sideways action, which would mean a consolidation at around $ 60,000. He wrote:
“50k and 80k hit highest contract / notional for $ BTC I think these writers will be happy and still have the same opinion that end of April – May begins the change that makes Bitcoin less favorable long. No breakout, just a range and rotation. “
In the long run, traders are still optimistic about Bitcoin. A pseudonymous trader known as “Crypto Capo” noted that based on historical trends, Bitcoin has moved out of a range that goes back 1,000 days.
The merchant highlighted:
“Now a technical analysis of $ BTC. Bitcoin has moved out of an accumulation range of over 1000 days. This usually results in long extensions. Currently, the increase over the previous ATH is only by 200%. “