BTC lost several support zones on the way to a bearish. Bitcoin contracts over $ 348 million have been liquidated in the last 4 hours. Bitcoin may be on its way to closing a $ 9,700 CME shear set in July.
In September, Bitcoin (BTC) price could not reach the levels it wanted. Bitcoin, which is experiencing a rapid decline of about 8.6% today; It lost several key support zones, including $ 11,600, $ 11,500, $ 11,200 and $ 11,000.
Over $ 348 Million BTC Liquidations Have Been Made In The Last 4 Hours
Due to the downward trend of Bitcoin, over $ 366 million in Bitcoin trading positions has been liquidated in the past 24 hours. Of that amount, $ 322 million came in the last four hours and as BTC retested $ 10,650.
Bitcoin (BTC) on the Way to Close CME Shear at $ 9,700
Bitcoin’s rapid and drastic fall below $ 11,000 has made many traders wonder if the $ 9,700 CME shear will eventually close. The scissors were set on July 27, and it resulted in Bitcoin breaking the $ 10,000 ceiling. Eventually, the asset broke the $ 11k and $ 12k levels.
Why is the Price Falling?
Bitcoin price continues to struggle as it is above the $ 10k resistance. The last trip to $ 12,000 may have ended for a while, now just a few days later the cryptocurrency is traded for less than $ 11,000. The reasons for the sudden and sharp decline in bitcoin include a strong recovery in the dollar, the increasing uncertainty surrounding the upcoming US election, and several mining pools that have moved large amounts of BTC to the exchanges.
In the past few days, the cryptocurrency market has turned into a big red sea and almost all assets are suffering from a larger market crash. Stocks are also down and gold is falling too, potentially suggesting a change in the upcoming wave.
Historically, September has not been a strong month for Bitcoin and other cryptocurrencies. In addition, there may be dips below the current level over the next few months. The next key “return date” for BTC is December 2.
This theory is also compatible with post-election recovery. The election is particularly important as the United States is in extreme political unrest and the two parties are beginning to clash more than ever. A Joe Biden victory could cause the markets to collapse further, while Trump’s victory could lead to a rally.
Markets in Fall
Whatever the reason, the markets are falling, causing the Bitcoin price to drop. As for how deep the correction can go, it seems likely that the $ 10,250 zone will be retested at this point.