Despite a lack of encouraging data, one researcher has suggested that Bitcoin might temporarily find support around the $27,000 mark.
On Monday, Dogecoin (DOGE) gained as much as 5% as a result of Twitter’s name change. The memecoin defied the market decline as bitcoin (BTC) fell to below $29,100 in the early hours of the European morning.
Twitter, now owned by Elon Musk, will be rebranded as X and will become a member of Musk’s X.AI family of artificial intelligence-focused businesses. Early on Monday, Musk added the dogecoin ticker logo to his bio, sparking rumours that the cryptocurrency might play a larger role in the newly renamed corporation.
When an exchange cancels a trader’s leveraged position forcibly because the trader has lost all or most of their original margin, this is known as a liquidation. This occurs when a trader opens a leveraged position but lacks the necessary margin capital to maintain the deal.
Large liquidations may alert traders to the local top or bottom of a price move, giving them time to adjust their position appropriately.
Tron’s TRX and Polygon’s MATIC both dropped 3.4%, while Solana’s SOL dropped almost 5%, as a result of Bitcoin’s decline.
Some experts have predicted that the absence of encouraging news and the relative calm of summer might further impact on bitcoin values, with some setting their sights on the $27,000 mark.
According to Alex Kuptsikevich, senior market analyst at FxPro, Bitcoin’s next key support level would be $27,000, the lower border of the ascending channel from the November lows and the 200-week moving average, if negative pressure were to intensify.
Simons Peters, a market analyst at eToro, had the same opinion. Bitcoin’s price has been steadily declining since its recent highs, and this trend seems certain to continue. Peters told CoinDesk in an email that the recent time has been relatively peaceful for the market’s biggest crypto assets, despite the fact that the market dynamic in the summer months may skew towards volatility with reduced trade volumes.
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