The price of Bitcoin (BTC) abruptly fell by nearly 6% in less than four hours as the new weekly candle opened on March 15.
Three factors contributed to the weakening momentum of Bitcoin, namely a new weekly open, high funding rates, and stablecoin inflows primarily driving the market upward.
New weekly candle and a reset pullback
When a new weekly candle opens, Bitcoin typically sees large volatility because the trend on Monday could dictate how Bitcoin might perform throughout the rest of the week.
BTC/USD 1-day chart with key levels. Source: Tradingview.com, Rekt Capital
In the last few hours, as the pseudonymous trader “Rekt Capital” noted, Bitcoin saw an overextended pullback. As a result, the trader said BTC could be in the process of seeing a “volatile reset.” The trader said:
“BTC has pulled back towards the red area and even overextending below it – for now The day is still young so price could still resolve itself relative to this red boxed area and turn it into support Technically, $BTC is in the process of a volatileTitle: 3 reasons Bitcoin fell 6% in 4 hours — Is the BTC price rally at risk?
Sourced From: cointelegraph.com/news/3-reasons-bitcoin-fell-6-in-4-hours-is-the-btc-rally-weakening
Published Date: Mon, 15 Mar 2021 10:33:28 +0000