Cryptocurrency expert Ardizor alleged that several cryptocurrency companies seem to be abandoning Bitcoin, which is why the price of BTC keeps falling. The leading cryptocurrency crashed over the weekend but is now recovering in hopes of… US-Iran agreement.
Why the price of BTC keeps falling
In Post XArdizor stated that the BTC price is being dumped because cryptocurrency exchanges Binance, Coinbase and Bybit, as well as whales and Wintermute have sold millions of BTC. He claimed that they sold over $2 billion worth of BTC and then alleged that it was a “clean, coordinated airdrop” that usually happens when the US market opens.
The expert quoted flows in the chain from the heated wallets of these cryptocurrency exchanges as evidence that they were abandoning Bitcoin. BTC’s latest price decline came over the weekend when the leading cryptocurrency fell below $75,000 after the SEC was reported to have delayed a decision on tokenized stocks due to regulatory concerns. Bitcoin also fell as market participants continued to price in the possibility of a Fed rate hike this year.
However, BTC price is rising again after crashing below $75,000, based on optimism that the United States and Iran may be close to an agreement to end the war. US President Donald Trump said over the weekend that the draft agreement had been largely negotiated, signaling that they could announce a peace deal soon.
Moreover, the BTC price and the broader cryptocurrency market are also recovering amid the decline in oil prices. Oil prices fell after Trump’s comments Strait of Hormuz will reopen under this arrangement, which may also ease inflationary pressures.
What’s next for Bitcoin
Cryptocurrency analyst Ted Pillows noticed that the BTC price closed above $75,000 and currently the key recovery zone is between $77,500 and $78,000, with an raise towards psychological zone $80,000. He warned that if Bitcoin fails to stay above $78,000, it will likely cross the $75,000 zone again.
Meanwhile, a cryptocurrency analyst Max noticed that many long, low-leverage liquidations were eliminated as the BTC price dropped below $75,000. He stated that this now leaves only one decent cluster below, which will be wiped out if the price breaks the previous low of $74,200. At the same time, he pointed to another cluster around the level of $80,000.
Related Reading: Bitcoin Price Breaks 14-Year Support for First Time in History, Analyst Predicts $50,000 Target
The analyst admitted that from a liquidity perspective, a retest of the $80,000 range is still possible, but the current market structure favors further declines. In line with this, Max said he expects the below liquidity to be withdrawn this week unless the BTC price prints a higher high, which invalidates bearish structure.
At the time of writing, Bitcoin is trading at around $77,300, having risen over the past 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
