Bitcoin (BTC) price falls again after short-term recovery
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- short term bounce
- Is Grayscale to blame?
Bitcoin (BTC) price is once again on the rise and struggling to gain enough bullish momentum.
The largest cryptocurrency fell below the $65,000 level on major spot exchanges earlier this Thursday, according to data provided by CoinGecko.
According to CoinGlass staff, more than $37 million worth of long positions were liquidated in the last four hours alone.
However, due to liquidations in the last 24 hours, short positions are still leading and are close to $120 million.
short term bounce
On Wednesday, Bitcoin bulls gathered enough strength to convincingly push the price of the largest cryptocurrency above the $67,000 level following dovish comments from Federal Reserve Chairman Jerome Powell. In fact, Bitcoin briefly topped $68,000 before reversing its decline. However, this resistance level has proven very difficult to break.
The surge ultimately ended in a firetrap that wiped out a significant portion of Bitcoin’s gains. It remains to be seen whether Bitcoin will remain range-bound for the remainder of this period of volatility. However, the bears appear ready to make another attempt to drive the price of Bitcoin below $60,000 after failing on Wednesday.
Is Grayscale to blame?
The massive outflows recorded by Grayscale’s GBTC appear to be fueling bearish sentiment for now. On Wednesday, it lost another $281 million, marking its largest outflow in history.
In response, leading ETF analyst Eric Balchunas dismissed the impact of Grayscale’s recent outflows on Bitcoin’s price action and argued that they are exerting greater influence. He also pointed out that there is no direct correlation between ETF flows and the price performance of flagship cryptocurrencies.
Source: https://u.today/bitcoin-btc-price-collapsing-again-after-short-lived-recovery
