Even though the Fear and Greed Index is pointing at 61, Bitcoin slid down 1.70% in the last 24 hours. After reaching $66,450 Bitcoin price has returned to $64,140 after failing to register a support in upper areas. Let’s discover the reasons for this price fall.
Exhaustion of Buyers
The MACD indicator shows that buyers had thrusted all their power to push bitcoin above $64,140. Once breached this point, the market gained confidence that surged the price to $66,450. However a support converted to resistance present at this range rejected the price causing it to crash to the latest support zone. RSI had almost entered the overbought zone as well.
The Zone of Dense Resistance
According to the data by IntoTheBlock, the immediate next price zone is the start of the heavy resistance zone. Between the price range of $66,845 and $78,500, 2.51 million bitcoin addresses have purchased a total volume of 1.26m bitcoin. Presence of this much volume in this price zone creates an area of high tension as it contains the 8% of Bitcoin holders that are still in loss. That makes 86% investors in profit with 5% people at the money.
Bitcoin Drop Caused heavy Liquidation
The sudden 2.9% drop in bitcoin price in the last few hours have caused liquidation of $100.99 million worth of trades in the last 12 hours. Alcoins followed the price drop of Bitcoin and have come red, including Ethereum that suffered a 2.76% loss. This caused long traders either to liquidate or close their positions giving a chance to short traders.
What to expect?
With October knocking on the door, Bitcoin is not going to stand still. $64,140 has become a good support point and it will help the price to bounce back. There are chances of Bitcoin to hit the $66,500 zone once again before September 30 closes. If the market closes with a positive note, the new month will push the price into a new zone of resistance. After the said resistance there are another danger zones waiting for btc starting with $67,350
