The price of Bitcoin (BTC) fell below $ 60,000 on April 17 after a strong rally last week in anticipation of the public listing of Coinbase on Nasdaq.
However, after the COIN listing, which is the indication of the Coinbase share, the cryptocurrency market started to recover.
An expected Bitcoin sell-the-news decline
Coinbase’s public listing has brought a lot of attention to the cryptocurrency market. This was the first public listing of a large cryptocurrency exchange, which led to a large institutional demand.
As a result, the cryptocurrency market rose to the listing, with the BTC price reaching new highs of more than $ 64.00. However, Bitcoin and Ether (ETH) were almost expected to decline after the fact, given the trend of cryptocurrencies to sell after a major event.
Another important factor that contributed to the fall in price was the relatively high financing rates for longing Bitcoin. This, coupled with strong technical resistance at $ 64,000 – $ 65,000, were the probable reasons that BTC tested $ 60,000 support after the hype surrounding Coinase’s listing began to disappear.
Meanwhile, the $ 60,000 level is a major price point for Bitcoin, as it took about a month before BTC broke out above it.
Therefore, it is important for Bitcoin to own the $ 60,000 area to maintain the bullish market structure next week.
Traders predict what is likely to come next
At the same time, crypto-currency traders are mixed about where Bitcoin will go with its new weekly candle.
Cantering Clark, for example, a popular trader in cryptocurrency derivatives, said the market is not necessarily bearish or bearish, based on options.
Instead, Clark noted that the trend of the options market shows that Bitcoin is likely to see sideways action, which would mean consolidation at around $ 60,000. He wrote:
“50k and 80k hit the highest contract / understanding for $ BTC. I think these writers will be happy and I still agree that late April – May will start the shift that makes Bitcoin a less favorable long term and rotation. “
In the long run, traders are still optimistic about Bitcoin. A pseudonymous trader, known as ‘Crypto Capo’, noted that Bitcoin is breaking out of a series that stretches back 1000 days based on historical trends.
The dealer emphasizes:
“Now a little technical analysis of $ BTC. Bitcoin has broken out of an accumulation range of over 1000 days. This usually results in long extensions. Currently, the increase over the previous ATH is only 200%.”