{"id":476514,"date":"2021-11-16T16:09:06","date_gmt":"2021-11-16T16:09:06","guid":{"rendered":"https:\/\/ktsl888.com\/?p=476514"},"modified":"2024-06-11T14:00:21","modified_gmt":"2024-06-11T14:00:21","slug":"surprise-bitcoin-selloff-causes-extreme-greed-to-taper","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/surprise-bitcoin-selloff-causes-extreme-greed-to-taper\/","title":{"rendered":"Surprise Bitcoin Selloff Causes Extreme Greed To Taper"},"content":{"rendered":"

Blood has been shed as Bitcoin dropped below $60,000 once again and hints at more downside. The first crypto by market cap trades at $60,800, as of press time, with a 5% loss in the daily chart.<\/p>\n

\"Bitcoin
BTC crashing in the 4-hour chart. Source: BTCUSD Tradingview<\/a><\/figcaption><\/figure>\n

Although it has seemed some recovery, Bitcoin registers a correction of around 12% from its all-time high as an increase in selling pressure caused the entire crypto market to take a dive.<\/p>\n

Related Reading | Bitcoin Bears Are Back, Why BTC Could Even Dive Below $60K<\/a>
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The general sentiment in the market has flipped from extreme greed to normal greed levels, according to data from Arcane Research. Despite the correction, traders and operators remain optimistic about potential new highs.<\/p>\n

This metric could continue to fall as Bitcoin moves at the low of a range between $58,000 to around $70,000 and the market reset. The derivatives sector is likely to be the most affected.<\/p>\n

As NewsBTC reported, Bitcoin futures contracts across the board got overheated as BTC\u2019s price pushed into uncharted territory. This created a lot of liquidity at the lows and a rise in funding rates.<\/p>\n

In other words, a lot of traders took over-leveraged long positions expecting more upside, but large investors drove the price below $59,000 to take advantage of the liquidity and fill their orders.<\/p>\n

Post-crash, funding rates have returned to neutral territory in almost every crypto exchange platform. Along with the market sentiment provided by Arcane Research, and the fact that the price of Bitcoin held at $58,6000, this suggests a potential bottom has formed, at least for the short term.<\/p>\n

Data provided by CryptoQuant records over $33 million long liquidations in one hour as BTC\u2019s price went below its current levels. The Open Interest (OI) decreased by 2.33% in the past day or about $350 million.<\/p>\n

\"Bitcoin
Source: CryptoQuant<\/figcaption><\/figure>\n

Additional data provided by Glassnode indicates that the OI for Bitcoin Futures contracts has reached a 5-month low of $711,951,837 on crypto exchange Bitmex. As seen below, a dropped in OI during September and October was preceded by more BTC appreciation.<\/p>\n

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\ud83d\udcc9 #Bitcoin<\/a> $BTC<\/a> Futures Open Interest just reached a 5-month low of $711,951,837.33 on #Bitmex<\/a><\/p>\n

Previous 5-month low of $713,112,500 was observed on 24 September 2021<\/p>\n

View metric:https:\/\/t.co\/GyObF5WOjC<\/a> pic.twitter.com\/bsa9S166ZP<\/a><\/p>\n

— glassnode alerts (@glassnodealerts) November 16, 2021<\/a><\/p><\/blockquote>\n