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Bitcoin opens the day dropping below $ 60,000

For the first time since October 15, Bitcoin fell below $ 60,000. The holders of the first cryptocurrency had experienced holidays last week when Bitcoin surpassed its historical maximum price for the first time since April, reaching a new record of 67,200 on October 20. All in all, traders were already anticipating a correction that would lead the cryptocurrency to test support levels below $ 60,000.

On the Bitcoin vs. USDT exchange pair on Binance, the price has touched a low of $ 58,035. Source: TradingView.

A few days after having exceeded the all-time high, several traders were already announcing that bitcoin should maintain the support of USD 62,000 in order not to fall to USD 58,000. However, it appears that sell orders outpaced buy orders, sending the cryptocurrency to test demand at the current price.

At USD 58,000 the rebound was immediate, positioning the cryptocurrency at USD 59,233 at the time of writing, which shows that there is strong demand in that price zone.

There are analysts who attribute this drop to the great leverage used by traders in the market. Charles Edwards of Capriole Investments stated that price growth would not be sustainable if leverage levels remained that high. However, think that the rest of the metrics remain healthy.

Despite the fall, Bitcoin remains in eighth place in the select group of billionaire assets, outperforming the market capitalization of companies like Tesla and Facebook. The price would have to fall below $ 54,000 to lose that position.

Bitcoin still has a way to go before it surpasses the capitalization of silver. Source: CompaniesMarketCap.

Bitcoin recently broke its all-time high following news about the approval of the first Bitcoin Futures Exchange Traded Funds in the United States. After eight years of long waiting, there are already three public funds of this type in the North American country, belonging to the companies ProShares, Valkyrie and VanEck. The potential approval of a spot ETF could serve as a new catalyst for the price of bitcoin to resume its bullish momentum in the last quarter of the year, which has historically tended to rise.

About the author

Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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