Bitcoin price is under constant downward pressure due to several major factors. The most important of these, is hawkish macroeconomic news and a rise in US Treasury bond yields, which activate a risk-off attitude among investors. The second factor may be political instability in Kazakhstan, which is one of the most significant crypo-mining markets in the world. Notifications that most of the country has been almost completely cut off from the Internet have added fuel to the declines. High overleveraging of the market and record levels of futures positions in the market are also causing pressure. All this leads the largest cryptocurrency to continue its declines.
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Open real account TRY DEMO Download mobile app Download mobile appThe chart showing how much leverage the market currently uses, large values indicate the acceptance of high risk of BTC fluctuations. Source: CryptoQuant
Altcoins are doing slightly better, having maintained some of their strength through BTC's waning dominance in the crypto market (currently 40%)
Surprisingly, long-term investors still seem to be comfortable with their holdings. The supply of BTC in their portfolios remains almost unchanged. Source: Glassnode
Currently, the largest cryptocurrency is testing areas near $40,500, which coincides with the local lows of September 2021. If the bulls fail to keep the price at the levels indicated by the green zone, the declines could accelerate sharply and fall below $40,000 and move towards the vicinity of $37,000. The closest resistance are the levels determined by the 23.6% Fibo retracement (around $47,000). Source: xStation 5
