On November 16, at the end of the day, bitcoin fell by 5.58%
The bitcoin rate closed lower on November 15, followed by a sharp drop on November 16. The BTC/USDt and ETH/USDt pair fell 11.8% and 14%, respectively. Cryptocurrency market capitalization decreased to $ 2.66 trillion.
There are three factors that could have provoked buyers to take profits.
- Continued strengthening of the US dollar on expectations of tightening monetary policy (risk aversion).
- US President Joe Biden signed into law the financing of infrastructure projects. The crypto industry got into it Now, organizations working with digital assets must notify the tax office of transactions worth more than $ 10 thousand.
- The PRC regulator has confirmed that it intends to oust all miners from the country. The authorities are ready to sharply raise fines for those companies that are engaged in crypto mining and carry out transactions with digital assets.
- Technical factor - breakdown of trend lines with eth and bitcoin on daily time frames.
I believe that all four points have the same weight of participation in the collapse of cryptocurrencies. They acted as triggers, and the loss of stops on margin transactions accelerated the fall. Over the past 24 hours, long positions in the amount of $ 262 million have been liquidated on bitcoin, and $ 190.5 million on eth.
The BTC/USD pair dropped to $ 58,574. The current rate is $ 60493. The price recovered by 3.5%. Bitcoin is in a bullish phase, however, the overall buying sentiment has slightly deteriorated. If sellers make another attempt to test the $ 58,500, buyers will have to lick their wounds for a long time.
CoinShares' report on institutional cryptocurrency investing has shown record inflows since the beginning of the year, indicating that large investors in general are still bullish on cryptocurrency.
Bitcoin prices rallied ahead of the Taproot update - the first update to the bitcoin chain in four years - which was successfully activated last Sunday. Now the situation will largely depend on the close of the day. A close above $ 61,700 will partially offset the bearish sentiment. Buyers will have the opportunity to regroup to recoup losses by the end of the week. If the day closes below $ 61,000, then take a closer look at the 51k and 55k levels.
On Tuesday, November 16, at the end of the day, Bitcoin fell by 5.58%, to $ 60,058. From the high of 69,000, the fall was 12.96%. Despite the punctures up to $ 58,500, buyers have enough strength to maintain their psychological level.
The dollar index climbed to a high of 96.27 in Asian trading on Wednesday. Today in the foreign exchange market, stops for long positions were broken for the main pairs, after which a rebound took place. The dollar index retreated to 95.87 points. Bitcoin bounced along with everyone else.
The rally in the dollar yesterday fueled strong data on retail sales, industrial production and the US housing market. Published reports point to an early rate hike by the US Federal Reserve. This is confirmed by the President of the St. Louis Fed and FOMC member James Bullard. He said the Fed should become more aggressive during the next meetings. If the bank accelerates the pace of quantitative easing cuts to $ 30 billion a month, it could provide an opportunity for rate hikes in the first quarter of 2022.
Sellers did not break the back of the bull market, but weakened buyers' positions. The day closed below $ 61,000. Now they have taken aim at the $ 55 thousand level, and the $ 51 thousand level still appeared on the radar.
The cryptocurrency index of fear and greed fell 19 points to 52, entering neutral territory. The fight continues. The spills are now 8-10%, but we can again see a bloodbath of 20%, after which buyers will recover for about three months. No ideas yet.
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