{"id":160554,"date":"2021-01-22T15:31:02","date_gmt":"2021-01-22T12:31:02","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-bitcoin-tumbled-below-30000-in-a-surprise-overnight-correction\/"},"modified":"2021-01-22T15:31:02","modified_gmt":"2021-01-22T12:31:02","slug":"3-reasons-bitcoin-tumbled-below-30000-in-a-surprise-overnight-correction","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-bitcoin-tumbled-below-30000-in-a-surprise-overnight-correction\/","title":{"rendered":"# 3 reasons Bitcoin tumbled below $30,000 in a surprise overnight correction"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26eae91c834\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26eae91c834\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-bitcoin-tumbled-below-30000-in-a-surprise-overnight-correction\/#Options_market_saw_more_puts\" >Options market saw more puts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-bitcoin-tumbled-below-30000-in-a-surprise-overnight-correction\/#Critical_resistance_rejected_whats_next\" >Critical resistance rejected, what\u2019s next?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-bitcoin-tumbled-below-30000-in-a-surprise-overnight-correction\/#Panic_drop\" >Panic drop<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons Bitcoin tumbled below $30,000 in a surprise overnight correction  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The price of Bitcoin (BTC) is continuing to reject the $35,000 resistance level, falling below $30,000 briefly overnight\u00a0on Jan. 22. <\/p>\n<p>BTC has pared some losses since, bouncing above $31,500. At these prices, however, BTC\/USD is headed for its worst week ever, losing over $5,000 in the past four days, as the bulls attempt to establish $32,000 as new support. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/0b802863-0292-4469-b652-7bc308528ae0.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-week candle chart (Coinbase). Source: Tradingview<\/em><\/figcaption><\/figure>\n<p>There are three main reasons why the price of Bitcoin dropped so steeply overnight. First, the options market was overheated with growing put options. Second, a critical resistance area was rejected. Third, the speed of the sell-off possibly led to a panic drop in a short period.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Options_market_saw_more_puts\"><\/span>Options market saw more puts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the options market, there are two types of contracts: puts and calls. Puts are sell orders and calls are buy orders.<\/p>\n<p>According to Laevitas, a data analytics platform, the options market has $3.1 billion in notional open interest with near-term put volume rising. They <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/laevitas1\/status\/1352512400302497793?s=09\">said<\/a>:<\/p>\n<blockquote><p>\u201c1 week left until the 29JAN contract expires on Deribit Exchange with over $3.1b in notional open interest. Max pain stands at $28k &#8211; the meme becomes reality? Put volume picking up since yesterday especially for near-term options.\u201d<\/p><\/blockquote>\n<p>Currently, the options market accounts for around 33% of the futures market\u2019s open interest. With over $3 billion in open interest, the options market can have a significant impact on the price of BTC.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/7290f954-8b80-4be4-9093-d2a189554da0.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin options traded contracts. Source: Laevitas<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Critical_resistance_rejected_whats_next\"><\/span>Critical resistance rejected, what\u2019s next?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The $35,000 level was a critical short-term resistance area. As soon as BTC rejected the level, it quickly\u00a0fell below $30,000.<\/p>\n<p>Scott Melker, a cryptocurrency analyst, said that Bitcoin swept the lows, even though it dipped below the previous support area. Hence, if the bullish structure remains intact, a rally back to $35,000 is a possibility. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/scottmelker\/status\/1352578475484467201\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cAs usual, the wick went a bit deeper than expected, but it&#8217;s following the plan. Swept the range lows into the box, bullish SFP and movement up. Solid volume on the SFP. I drew this yesterday and shared it live, don&#8217;t @ me about hindsight. Not out of the woods yet.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/593f3bb2-18cb-479f-b3c8-3928c3e45322.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin price chart with key levels. Source: TradingView.com, Scott Melker<\/em><\/figcaption><\/figure>\n<p>In the near term, traders will likely be watching the $35,000 level for confirmation of where BTC will be headed next.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Panic_drop\"><\/span>Panic drop<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As the price of Bitcoin dropped below $33,500, the previous support level, a panic sell-off ensued. In fact, the Crypto Fear and Greed Index plummeted to &#8220;fear&#8221; for the first time since October after spending months in &#8220;extreme fear.&#8221;<\/p>\n<p>A pseudonymous trader known as \u201cKaleo\u201d emphasized that the market sentiment in crypto tends to shift quickly. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoKaleo\/status\/1352193257493704705\">said<\/a>:<\/p>\n<blockquote><p>\u201cIf #Bitcoin dips to the low 20Ks, it\u2019ll be just low enough that all of your friends and family who bought the past few weeks will hate you. They\u2019ll never want to touch $BTC again&#8230; only to ask if it\u2019s a good time to buy more at $50K or if they should wait for another dip.\u201d<\/p><\/blockquote>\n<p>However, one bullish catalyst for Bitcoin in the near term is the continuous accumulation of BTC by Grayscale. On Jan. 19, the fund added a record 16,244 BTC ($607 million) in one day to its holdings or 18 times the amount of new BTC that&#8217;s mined per day.\u00a0\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-bitcoin-tumbled-below-30-000-in-a-surprise-overnight-correction\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons Bitcoin tumbled below $30,000 in a surprise overnight correction &#8221; The price of Bitcoin (BTC) is continuing to reject the $35,000 resistance level, falling below $30,000 briefly overnight\u00a0on Jan. 22. BTC has pared some losses since, bouncing above $31,500. At these prices, however, BTC\/USD is headed for its worst week ever, losing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":160555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvOGE3OGVhYmMtOGY1OC00OTBkLWFhOTctNWY1YmNkZDg4MGZiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,81209,74937,74939,73785],"class_list":["post-160554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-options","tag-bitcoin-price","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/160554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=160554"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/160554\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/160555"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=160554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=160554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=160554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}