[Bitcoin price] Bitcoin price fell below $34,000
The price of Bitcoin has fallen below $34,000 in the past 24 hours.
Liquidated nearly $500 million in cryptocurrency futures.
In the past 24 hours, when the price of Bitcoin fell below US$34,000, nearly US$500 million in cryptocurrency futures positions were liquidated.
As of last night, the value of leading crypto assets has increased by nearly 7%. The price of Bitcoin rose from $35k to $38k; however, during the same period, the financing rate of futures rose, thus indicating that the market was over-leveraged. Major cryptocurrency exchanges have seen funding rates rise to 0.07%.
Considering that the typical financing rate in the futures market is usually around 0.01%, the rise in futures prices and the rise in the price of Bitcoin to $38k have made the market overcrowded.
Therefore, when asset prices began to fall due to several large selling orders above $38.000, the oversaturated futures market played an important role in price correction.
Nevertheless, the current US$500 million clearing transaction in the futures market is still a long way from the US$1 billion clearing transaction at the peak of last week.
It should be noted that despite the high level of liquidation, interest in the futures market has not declined. There are still many traders in the market who are still trading Bitcoin futures. This provides room for further squeeze the market.
If the price of Bitcoin falls below $30,000, the bear market will beckon
Salsa Tekila, a well-known cryptocurrency trader, believes that if the price of Bitcoin falls below $30,000, it will become a "bear market area."
For the price of tokens, maintaining $30,000 as an important macro support area is crucial. He added that if the price of the asset has ever fallen below that price, then "enough holders of underwater bags can keep us in a long-term downturn." However, the market can still continue to "recycle and maintain above 40,000".
Article from: www.yunquezhai.com