{"id":99586,"date":"2020-10-28T18:24:48","date_gmt":"2020-10-28T15:24:48","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-bitcoin-price-suddenly-dropping-below-13000-isnt-bearish\/"},"modified":"2020-10-28T18:24:48","modified_gmt":"2020-10-28T15:24:48","slug":"3-reasons-why-bitcoin-price-suddenly-dropping-below-13000-isnt-bearish","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-price-suddenly-dropping-below-13000-isnt-bearish\/","title":{"rendered":"# 3 reasons why Bitcoin price suddenly dropping below $13,000 isn&#8217;t bearish"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 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-6a3ccb7fa02d3\" 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-6a3ccb7fa02d3\" 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-why-bitcoin-price-suddenly-dropping-below-13000-isnt-bearish\/#Bitcoin_drops_to_where_it_was_yesterday\" >Bitcoin drops to where it was yesterday<\/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-why-bitcoin-price-suddenly-dropping-below-13000-isnt-bearish\/#The_13873_level_is_a_multi-year_resistance_area\" >The $13,873 level is a multi-year resistance area<\/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-why-bitcoin-price-suddenly-dropping-below-13000-isnt-bearish\/#BTC_decline_coincided_with_lack_of_stablecoin_inflows\" >BTC decline coincided with lack of stablecoin inflows<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why Bitcoin price suddenly dropping below $13,000 isn&#8217;t bearish <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">The price of Bitcoin (BTC) fell below $13,000 on Oct. 28 shortly after hitting $13,850 at the day\u2019s peak. Despite the 7% drop in 11 hours, however, the market sentiment remains positive for three key reasons.<\/p>\n<p>First, Bitcoin is still at where it was on Oct. 27, merely 24 hours ago. Second, BTC rose to $13,850, right below a multi-year resistance area at $13,873. Third, a marketwide drop was expected due to declining stablecoin inflows into exchanges.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_drops_to_where_it_was_yesterday\"><\/span>Bitcoin drops to where it was yesterday<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the last two days, the price of Bitcoin rallied 8.5% from $13,783 to $13,850 on Coinbase. The move came after a month-long uptrend during which BTC rose from around $10,200 to $13,850.<\/p>\n<p>Now, on high time frame charts, like the daily chart, for example, BTC price is hovering above a key short-term moving average.<\/p>\n<p>The recent pattern of Bitcoin following up each uptrend with a consolidation phase makes the ongoing rally sustainable.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/08c0410b-abf4-4ba5-b4db-443788f1e84d.png\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>The daily Bitcoin price chart with funding rates. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<p>The strength of the spot market over the derivatives market also indicates that the uptrend is strong and healthy. A pseudonymous trader known as \u201cByzantine <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>\u201d <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/ByzGeneral\/status\/1321414736915955713\">said<\/a>:<\/p>\n<blockquote><p>\u201cA higher spot price &amp; higher spot volume (relatively speaking) is considered bullish because it means that the rally is based on actual buying instead of degenerates gambling on derivatives.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"The_13873_level_is_a_multi-year_resistance_area\"><\/span>The $13,873 level is a multi-year resistance area<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin peaked at around $13,900 in July 2019 across major exchanges. As Cointelegraph reported, many traders pinpointed the $13,875 level as the pivotal resistance area in the short term partially for this reason.<\/p>\n<p>If BTC had continuously risen beyond $13,875 without any pullback, it would have caused the rally to become massively overheated. In the medium term, that would have raised the probability of deep pullback, or as some on-chain analysts call it, a \u201chell candle.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_decline_coincided_with_lack_of_stablecoin_inflows\"><\/span>BTC decline coincided with lack of stablecoin inflows<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Prior to the short-term correction of Bitcoin, CryptoQuant CEO Ki-Young Ju warned that stablecoin inflows into exchanges were declining.<\/p>\n<p>The inflow of stablecoins is an accurate metric to gauge buyer demand because stablecoins, like Tether, account for a large portion of the cryptocurrency market\u2019s volume. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/881af5ed-1e9e-4705-b262-5d9e53f9d786.jpg\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>Stablecoin inflows into exchanges sharply drop. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1321151552518643712\/photo\/1\">CryptoQuant<\/a><\/em><\/figcaption><\/figure>\n<p>According to CoinMarketCap, the daily volume of Tether exceeds $59 billion across major exchanges. Purely in terms of daily volume, Tether is the most-traded cryptocurrency in the global market. A few hours before the BTC drop occurred, Ju <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1321151552518643712\">tweeted<\/a>:<\/p>\n<blockquote><p>\u201cFewer people are depositing #stablecoins to exchanges. BTC Buying power is weakening in the short-term(72h).\u201d<\/p><\/blockquote>\n<p>The drop in stablecoin inflows might have triggered a sharp Bitcoin pullback because buyers and sellers were intensely battling over the past week. Some miners and whales were selling, while new inflows continuously offsetted the selling pressure.<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\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 noreferrer\">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 noreferrer\">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-why-bitcoin-price-suddenly-dropping-below-13-000-isn-t-bearish\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why Bitcoin price suddenly dropping below $13,000 isn&#8217;t bearish &#8221; The price of Bitcoin (BTC) fell below $13,000 on Oct. 28 shortly after hitting $13,850 at the day\u2019s peak. Despite the 7% drop in 11 hours, however, the market sentiment remains positive for three key reasons. First, Bitcoin is still at where&#8230;<\/p>\n","protected":false},"author":1,"featured_media":99587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/59406031-6254-473b-bf2e-cc099b6413ff.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,73785],"class_list":["post-99586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/99586","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=99586"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/99586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/99587"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=99586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=99586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=99586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}