After bitcoin’s third production halved, after several attempts to break the $10,000 mark, the trend continued to repeat. Yesterday, it suddenly started from the level of $9583.15 USD, and once surged 6.4% to a high of $10199.56 USD. However, the price was above 10,000 US dollars. After running for hours, it fell behind and withdrew more than 7% from its high, completely evaporating yesterday’s rise.
The market estimated earlier that due to the global economy being dragged down by the new coronary pneumonia, local governments need to “print silver paper” to stimulate the weak economy. Institutional investors are worried about currency depreciation, so they have begun to enter the cryptocurrency market one after another, seeing Bitcoin as a means of hedging. After bitcoin’s production was halved on May 12, its price was repeatedly squandered, but it failed to break through the $10,000 mark until it surged yesterday. It was first seen in recent months at levels above $10,000.
However, bitcoin failed to maintain this important threshold, cut to 8:30 in the morning, fell 5.4% to $9531.43 US dollars. If calculated according to the price of the BitMex exchange, Bitcoin once fell more than 7% from the high, and the low reached the level of $8,600. Comprehensive market analysis, due to factors such as halving Bitcoin production and quantitative easing, investors are optimistic about the prospects of Bitcoin and open long positions in BitMex. However, the number of long positions has soared, and Tanyou is also waiting for an opportunity. As a result, due to the lack of contention in the futures market, the spot market prices have fluctuated considerably.
At the same time, the market noticed that large amounts of funds were transferred to BitMex and Binance Exchange before the sharp decline. It is estimated that large investors are ready to make short sales or take advantage of the trend to sell goods and other actions. It is worth noting that Bitcoin’s high at $10,500, which was a high level in October last year, is an important resistance level. It has not yet broken through in the past period, and it will also enter a short period of adjustment afterward. I believe that the future price trend will still be quite volatile.