Bitcoin (Bitcoin) Rebounded to close to $50,000 on December 5th as traders continued to count recent events.
Freshly baked Fell to $41,900 Earlier on Saturday, the currency pair stabilized as the market digested the latest major deleveraging event that hit Bitcoin this year.
TLDR of what happened last night:
Open positions that last for several weeks + active funds and a weekend low liquidity system (meaning a thin order book) provide a perfect storm for the long-term liquidation cascade.
These forced sales are executed into thin ledgers, thereby downsizing.
— Will Clemente (@WClementeIII) December 4, 2021
However, for some people, there are good reasons to be cautious not to underestimate the impact of another long-term low.
Lex Moskovski, CIO of Moskovski Capital, said: “We fell again. CT lost and sold more. But it was miraculously acquired,” Expected Some comments on the prospects of Bitcoin.
“Integrate, slowly grind up.”
This slow growth now has important support levels that need to be regained: $50,000 and a $1 trillion market capitalization area slightly above $53,000, as well as various previous historical highs.
At the same time, trader and analyst Rekt Capital sees the 200-day exponential moving average (EMA) as a potential line. The support line has been maintained since August but was broken during Saturday’s decline.
— Rekt Capital (@rektcapital) December 5, 2021
In late September, when BTC/USD last traded at the level of 42,000 US dollars, it also saw a test of the 200 EMA. Rekt Capital pointed out that the severity of the decline is still dwarfed by the previous decline in history.
“You survived the -84.5% BTC bear market. You survived the -63% BTC crash in March 2020. You survived the -53% BTC crash in May 2021. You will be here too. Survived the crash,” he Add to.
Is it enough?
Observations of the current state of the derivatives market indicate Funding rate At the time of writing, it was either neutral or slightly negative, which is a significant difference from a few days ago.
During the deleveraging process, a large number of open futures contracts were erased, and more than 2.5 billion US dollars in encrypted accounts were liquidated.
The question for commentators now is whether enough bubbles have been eliminated to ensure steady growth is restored.
Is there enough open positions? pic.twitter.com/jnvrqRPDot
-Nunya Bizniz (@Pladizow) December 4, 2021
At the same time, the weekly closing price looks set to be Bitcoin’s lowest point since the beginning of October.