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Bitcoin declined by about 5% today after a hard weekend, where it showed no signs of growth. There is almost no liquidity at all on weekends, so this cryptocurrency is most vulnerable to collapse, and Monday becomes the X-day for it.
The digital gold has lost almost 20% of its value. After such a sharp fall, it has fewer and fewer prerequisites for new growth.
The last catalyst for demand and interest in Bitcoin was the purchase of 7002 bitcoins by Microstrategy.
Investors are confident that such a sharp pullback from its historical high is associated with the departure of institutions from highly volatile assets to traditional markets, due to fears of the Omicron coronavirus.
These concerns, together with low trading liquidity, tend to manifest themselves on weekends. Matt Dibb of Stock funds, a Singapore-based crypto distributor, believes that the entire fourth quarter of this year will be a tough bearish month.
It will be difficult for Bitcoin to return to its historical highs and break through the resistance level of $69,000.
Prices continued to fall over the weekend, and investors who bought Bitcoins with a margin watched the situation when exchanges closed long positions, which became the catalyst for rapid sales.
On Saturday, many exchanges closed long positions on bitcoin worth more than $ 2 billion. Some exchanges allow traders to open positions more than 20 times the size of investments, which leads to the fact that even a slight movement in the wrong direction can serve as a catalyst for exchanges to begin liquidating customer positions.
Ben Caselin, an analyst at the cryptocurrency exchange, said that liquidity has fallen significantly due to the fact that major traders are relocating bitcoins from exchanges to cold wallets.
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