Bitcoin dipped as low as $39k a few minutes to the time of writing. This is the lowest it has attained over the last fourteen days. This is especially surprising as the top coin has seen a lot of strong bullish fundamentals lately.
For example, Próspera, a special economic zone located in Roatan, Honduras, last week declared Bitcoin and other cryptocurrencies as legal tenders within its jurisdiction. More adoption was promised at the just concluded BTC conference as Strike announced that it has partnered with Shopify, NRC, and Blackhawk to speed up the process.
The bullish news was expected to change the bearish state of the market but failed as the current price suggests. What went wrong?
Low Bullish Reaction to Bitcoin
Following these stories, we observed that the fear and greed index made a slight recovery as it peaked at 37 following the start of the conference. After the announcements were made and a small push from 30 to 34 was seen.
This metric suggests that the majority of the bulls are either still holding on to stablecoins or in the market with incurring losses. As per on-chain analysis, only 56% of bitcoin HODLers are currently profiting from the market while 34% are losing funds.
The most recent corrections have also resulted in long positions worth almost $40 million, liquidated over the last 4 hours. However, the dip is seen as a normal occurrence as most traders on Twitter are either silent or calling for calm.
Bitcoin saw massive trading volume over the last 24 hours as the sum of the trading activity increased by more than 100%. This increase in volume is facilitated by traders taking profit off the market.
Additionally, funding rates on major exchanges are down by a few percent with outflows increasing. The BTC may continue to downtrend if current market sentiment remains the same.
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