Bitcoin failed below $60K — What’s behind the price drop?

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Bitcoin’s price plummeted to $60,000 just days after Coinbase’s public listing.

Bitcoin (BTC) fell below $60,000 on April 17 following a solid rally over the previous week in anticipation of Coinbase’s Nasdaq public listing.

However, the cryptocurrency market began to correct after the COIN listing, which is the ticker of the Coinbase stock.

BTC/USDT 1-day price chart (Binance). Source: TradingView.com

An expected Bitcoin sell-the-news drop

The public listing of Coinbase drew a lot of attention to the cryptocurrency sector. It was the first public listing of a major cryptocurrency exchange, which resulted in strong institutional demand.

As a result, the cryptocurrency industry surged in the run-up to the listing, with BTC reaching fresh all-time highs of more than $64,000. However, given the propensity of cryptocurrencies to sell off during a significant incident, it was almost certain that Bitcoin and Ether (ETH) will fall after the reality.

Another significant factor contributing to the price decline was the comparatively high financing costs for longing Bitcoin. This, along with high technical resistance at $64,000-$65,000, were most likely the reasons why BTC checked $60,000 support after the excitement around Coinase’s listing faded.

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Bitcoin funding rates. Source: Bybt.com

Meanwhile, the $60,000 price range is significant for Bitcoin since it took only a month for BTC to break out over it.

As a result, Bitcoin must keep the $60,000 level in order to sustain the bullish trading framework going into next week.

Traders predict what would likely come next

Simultaneously, blockchain markets are divided on where Bitcoin will go for its latest weekly candle.

For example, Cantering Clark, a well-known cryptocurrency derivatives trader, said that based on options data, the market is neither bullish nor bearish.

 

The Bitcoin options market open interest is ranging. Source: Bybt.com

Clark, on the other hand, observed that the options market movement indicates that Bitcoin would definitely see sideways activity, implying a stabilisation at about $60,000. He wrote:

“50k and 80k strikes highest contract/notional for $BTC I think these writers will be happy and I am still in the same opinion that the end of April – May begins the shift that makes Bitcoin a less favorable long. No breakout, just range and rotation.”

In the long run, markets are bullish on Bitcoin. According to a pseudonymous dealer posing as “Crypto Capo” Bitcoin has burst out of a 1,000-day window focused on historical patterns.

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The trader emphasized:

“Now some $BTC technical analysis. Bitcoin has broken out of an accumulation range of over 1000 days. This usually results in long extensions. Currently, the increase over the previous ATH is only 200%.”

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