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The post CryptoQuant Reveals Top 5 Key Charts Why BTC Plunged 10.8% in Just Two Days! appeared first on Coinpedia Fintech News
In the past two days, Bitcoin dropped from $65,062 to $58,053, a decrease of 10.8%, as enthusiasm over potential Federal Reserve interest-rate cuts faded. Over the past three months, Bitcoin has fallen by 12% and is currently trading 20% below its peak of nearly $74,000 reached in March.
Maartunn, a leading author at CryptoQuant, has examined this recent market movement and highlighted five key charts that explain the dramatic changes in cryptocurrency prices.
5 Key Charts on the Recent Price Drop
Maartunn, a prominent author at CryptoQuant, has analyzed the recent market movement and identified five key charts that help explain the dramatic shifts in cryptocurrency prices.
Short-Term Holders Create Resistance
One significant factor in the recent drop is the resistance created by short-term holders. These holders, who bought Bitcoin at higher prices, are now experiencing losses. Earlier this month, Bitcoin’s sharp decline left these short-term holders with an average 17% loss.
As the price recovered to their average cost, they sold around break-even, creating resistance that contributed to the ongoing price struggles.
Rising Open Interest
The rise in Open Interest up 31% from $13.5 billion to $17.9 billion since August 5th indicates increased speculation in the Bitcoin futures market. However, positive Funding Rates suggest a premium on perpetual contracts, further adding to market instability.
Bitcoin ETFs Inflow In Green
Amid the price decline, the U.S. spot Bitcoin (BTC) exchange-traded funds (ETFs) are experiencing strong performance, with eight consecutive days of net inflows totaling $195.65 million.
Meanwhile, another led CryptoQuant’s author IT Tech noted that these inflows primarily came from large holders, adding additional strain to already unstable futures positions.
I’ve noticed an increase in $BTC inflows on spot exchanges.
What does this mean? 
It could lead to selling pressure, so be cautious. I’ll keep you updated if I notice any changes. Keep an eye on my profile and click the bell to stay informed! 
pic.twitter.com/mcS9tnYJKU
Surge in Long Liquidations
The recent price drop has led to a significant increase in liquidations. Ethereum long liquidations surged to $55 million, and Bitcoin long liquidations reached $90 million, marking the highest levels since early August.
This surge in liquidations has caused Open Interest to drop by $2.2 billion, as many traders were forced to exit their positions.
Market Stabilization Needed
The recent market turmoil has left many traders in precarious positions. As a result, the market will need some time to stabilize. Monitoring on-chain data in the coming days will be crucial for understanding future price movements and market conditions.
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