Bitcoin traded above $65k for most part of the day but ran into some bears later on. The largest digital currency by market capitalization recently recorded a new all time high to go as high as $67k. However, the market has corrected itself slightly as some investors took to profiteering from these all-time high levels.
The Bitcoin bears are currently trying to salvage some sort of presence in the market after recent highs. The market was also flashing some red indicators so a classic drawdown to the $60k support has apparently begun. So far, the index has gone to as low as $62.5k at one point but has recovered slightly around press time to $63.5k.
Image Source: TradingView
To some traders, the pullback was very much expected an inline with their analysis of the latest bull run.
According to a popular crypto trader named Rekt Capital on Twitter:
It’s just a joke.
Most of you will get liquidated on a 5% drop anyway so it won’t matter what happens after that.
— NebraskanGooner (@nebraskangooner) October 21, 2021
Bitcoin Futures funding rates are also a useful indicator in situations like this. Overnight, the rates had skyrocketed as astronomical number of such contracts were created and sold on exchanges. However, as the euphoria died down over time, the funding rates went back to normal levels and have remained there till press time. The sudden rise is funding rate can also be tied to the fact that the first Bitcoin Futures ETF was launched in the USA hardly 48 hours ago.
The infamous “Greed Index” also ran high due to the iconic move above $64.5k (previous high levels). But, historically, it is still some value away from the greed we normally see at the end of big bull runs.
So, all of these indicators meant that the cryptocurrency was ripe for a decent price pullback and we are seeing that right now. However, the $60k resistance is important for the bulls and they need to defend it well, otherwise, the move above could easily become a bull trap.
The same kind of price pullback wasn’t witnessed in the altcoin market as many of them remained stable throughout the day. This is another indication that another alt season will soon be upon us as investors seem to think Bitcoin’s progress is slow and maxed out while altcoins still have a lot of space to expand their valuation. However, some price pullback was witnessed in some cryptocurrencies that normally mimic the behaviour of Bitcoin itself.
Image Source: pixabay
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