Without a sense of impact on its effects, Evergrand’s potential default has affected the cryptocurrency market and Bitcoin. The first cryptocurrency through the market cap started at the beginning of the week with the risk of further correction.
At the time of writing, Bitcoin traded at 43 43,462 on the daily and weekly charts, with losses of 9.1% and 6%, respectively.
Bitcoin retains critical support
Pseudonym analyst IncomeSharks claims that Bitcoin could be the beginning of a correction. The analyst looked at BTC’s On Balance Volume (OBV), a metric used to measure speed.
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As can be seen below, Bitcoin has been moving sideways since its OBV Move Side upwards at the end of July. This is in line with BTC’s previous range as well as its current price action.
If Bitcoin breaks the negative side of its OBV, bulls may face obstacles in their efforts to regain previous heights.
Meanwhile, $ 40,500 to $ 43,000 will serve as critical support, with $ 50,000 still acting as a major deterrent, according to analyst Dan Crypto Trades. This analyst says:
BTC I see $ 40.5-50K almost as a large range we. The whole .50.5-3.5 should be well supported in the area and I doubt we will get down to it without too much fighting.
Bitcoin index is in favor of bulls
Despite current price action and macroeconomic factors that suggest more negativity, Bitcoin seems to show strength in some of its fundamentals. Part of the cause of the accident, according to a Glasnoid report, is that some BTC holders are making high profits.
Since the end of July, the market has consistently made a net profit on orders of around 1 1 billion per day as prices have risen from হাজার 31,000 to above 52 52. This suggests a relatively meaningful price that has supported the way to the market.
An important metric that has been favorable to bulls is the amount of bitcoin on the exchange platform. With BTC standing at 13% of total supply, a new multi-year low according to Glasnoid, the metric has continued the downward trend.
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As seen below, the amount of BTC on the exchange has returned to the last level seen in February 2018. Bitcoin then follows the consolidation period before gathering enough energy to score the all-time high.