According to market analysis, sellers would “need to panic out to a big degree” if Bitcoin started knocking on the door of a sub $30,000 Bitcoin.
On prominent exchanges Coinbase and Binance, order books, which are essentially a list of orders used by a trading outlet to represent buyer and seller interest, show significant buyer interest in the $30,000 range.
On Binance, there are 5,000 Bitcoins available for purchase at a price of $30,000, and another 7,000 BTC at a price of $28,000.
Although the sell-off isn’t done, Bitcoin (BTC) purchasers should rest easy knowing that order books in the $28,500 to $30,000 range are thick. As a result, the price drop caused by Russia’s military actions may be paused.
According to Statista, Binance is one of the leading exchanges in the world, routinely displaying the biggest spot volume during a 24-hour period.
It’s a similar tale for Coinbase, albeit with more pronounced figures. There are approximately 3,500 Bitcoin available for purchase at a price of around $30,000, and 4,500 Bitcoin available to gobble up Bitcoin at a price of around $28,000.
On Sam Bankman-crypto Fried’s exchange, FTX, “futures open interest just reached a 6-month low of $1,780,397,103.63,” according to Glassnode.
For the past few weeks, open interest has been declining across all exchanges, indicating that fewer traders are “liquidated” and that wild price fluctuations are less likely.
Minimal open interest is also revealed by metrics on the Bybit and Binance Futures markets. In other words, these exchanges aren’t going to “deleverage us out” of the current bearish market action, and leveraged positions are diminishing.
So, if leveraged positions or “liquidation cascades” aren’t driving the price lower, and there’s significant but interest below $30,000, what would cause a Bitcoin price below $30,000?
Selling on the spot. There must be a compelling rationale for sellers who did not sell when Bitcoin was under $33,000 to do so now.
With the Bitcoin Dread and Greed Index moving back into “severe fear” territory, and BTC dropping 12% overnight, investors’ faith will be put to the test once more.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
