Everything seemed to go well lately. Bitcoin rose above $43K and was testing strong resistance around $44K, but its price fell on Friday January 21 to $38K.
More than 700 million positions were liquidated in less than 24 hours, according to the specialized media cryptocurrencies.
Saturday January 22, the price fell back and stood at $35,250.79, according to data published by CoinMarket.
Three possible reasons why this is happening
Clearance and high correlation
The S&P 500 fell 1.1%, the index NASDAQ fell 1.3% and Dow Jone fell 0.9%. Not only that, but the derivatives market also suffered.
CNBC revealed that the index of the Nasdaq 100 futures fell after Netflix revealed its poor earnings. Following the release of the report, shares fell nearly 19% during Thursday’s prolonged trading session, signaling slowing subscriber growth.
On 18 October 2021, the S & P 500 closed below 4,500 and T3 Live’s Scott Redler stated that the market had been sending mixed signals for weeks and the broader indices appeared to be breaking.
But the price of Bitcoin has always been closely linked to traditional indices and the latest drop was no exception.
BTC entries in trade grew
BTC total inflows in trade may indicate possible selling pressure. The more you negotiate the BTC, the greater the potential selling pressure.
Total inflows into the stock increased in the days before the fall:
“The figure has risen steadily since January 16, indicating that the BTC has moved to swap portfolios to be sold,” explains CryptoQuant.
Options sale of $39K in Deribit
Among the put options, the exercise price of $39K in Deribit had the highest open interest. For those who do not know, when low selling options profiteers price.
Approximately $538 million in contracts options Bitcoin expire today with a scene of pain up to $43K.
