Bitcoin (BTC) loses the $ 55,000 today, May 4, 2021. The very beginning of the bull run is abruptly interrupted in the short term.
One red and one big, no surprise
Bitcoin fall to $ 53,540 on Bitfinex today. It is trading at $ 54,234 at the time of writing. It is currently recording a daily loss of 5.10%, a daily decrease of $ 2,913.
The BTC suffers a major correction after coming close to $ 59,000 yesterday, May 3, 2021. The wall of resistance in the $ 57,000- $ 60,000 zone has once again prevented the bulls from taking over the $ 60,000, while threatening the $ 50,000 again.
The rise of Bitcoin is all the more complicated by an increase in deposits of BTC on exchanges.
According to data from Bybit, 16,222 BTC have been transferred to Binance during the last 7 days.
Okex, Huobi, Bitfinex and Kraken have also seen their reserves BTC increase in the last 24 hours.
These increases are however offset by the withdrawal of BTC on other exchanges.
While deposits on Binance increase, the balance BTC of Coinbase pro decreased by 11 947 BTC.
The risk of a drop below $ 50,000 is all the more plausible in view of the Crypto Fear & Greed Index which reaches 68% today.
The markets are much more inclined to sell their cryptocurrencies, the probability of a liquidation increases.
Sustainable green for later
Although the BTC lost the $ 55,000 today, the Long-Term Holder Net Position Change has turned green in recent days, after a long period in the red.
Data from Glassnode also show that the 7-day moving average of miner outflow volume hit a 6-month low at 46,301 BTC.
Miners and HODlers are accumulating Bitcoin. This accumulation does not seem to have a positive impact on the price of BTC in the short term.
However, it should allow a lasting rise in the price of Bitcoin when the bulls manage to break the $ 60,000.
How many times do bulls have to face resistance in the $ 57,000- $ 60,000 zone to get it over with? The good days in the BTC markets will return, but no one knows if this summer BTC is scheduled for this month of May 2021.
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The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.