Leading cryptocurrency Bitcoin fell as low as $81,000 overnight amid weakness in South Korean and US technology stocks, but quickly recovered and surpassed $84,000.
This situation with BTC, where hundreds of millions of dollars worth of leveraged positions were liquidated, prompted renowned investor Tom Lee to warn that the decline in the South Korean stock market could spill over into cryptocurrencies. In the short term, markets are closely watching this week’s US consumer price index as a key determinant.
Bitfinex Announces Critical Upward and Downward Levels for Bitcoin!
Bitcoin’s recent movements, after retesting the $87,000 level last week but failing to hold, have also been a topic of discussion for Bitfinex analysts. Analysts noted that despite the price falling to $81,000, there is still no significant panic in the cryptocurrency market.
Bitfinex noted that the recent BTC correction resembled dips seen during past recovery periods, but there were no signs of large-scale selling by investors who had bought during the previous trading range.
Bitfinex analysts, in their assessment, particularly highlighted the outflows from spot Bitcoin ETFs and warned that if selling pressure continues, the BTC price could fall to $77,000.
Bitfinex analysts state that $81,300 is critical for Bitcoin at this point, noting that maintaining this level would be positive for the current recovery process. However, if Bitcoin permanently falls below $81,300 and ETF-related capital outflows resume, BTC could experience a deeper pullback to $77,400.
Analysts also noted that the average cost for spot Bitcoin ETF investors, around $84,340, is critical for an uptrend. Bitcoin trading below this level could cause some investors who have reached the break-even point to sell if the price rises again.
In this context, Bitfinex stated that the base scenario for Bitcoin in the short term is for it to move within the $81,300–$84,500 range, adding that if $84,500 is surpassed and ETF inflows strengthen, the $87,722 level could come back into play.
*This is not investment advice.
Continue Reading: Bitcoin Continues to Search for a New Direction: Bitfinex Analysts Say No Need to Panic, Explain Critical Levels for Both Rises and Falls!