Bitcoin fell below $43K — analysts named the reason
On September 7, traders were caught off guard by the significant drop in the Bitcoin exchange rate below $43,000. After this, in the derivatives markets, a massive liquidation of assets worth more than $3.54 billion followed.
According to TradingView, the BTC sell-off started in the early hours of trading and accelerated until midday when the price of Bitcoin dropped to a low of $42,837.
Network analyst Willy Woo, analysing the September 7 market developments, noted that broader financial markets have opened up a day’s hedge against risks. This, in turn, put pressure on the crypto market, which grew throughout the day.
The ensuing Bitcoin sell-off resulted in the liquidation of the $1.1 billion assets. However, investors are in no hurry to close their positions, and the most recent activity shows that exchanges are back in buy mode.
Market analyst Michaël van de Poppe said overleveraged traders played a significant role in the September 7 price change.
According to Poppe, if Bitcoin can close above the $47,000-48,000 range after this pull-back, then this move would be considered a deviation from the previously established trend and a good buying opportunity if the uptrend resumes.
According to Coinmarketcap, at the time of writing, Bitcoin is trading at $46,186, with a market cap of $868.78 billion.