Bitcoin drops below $63,000 after rejection of resistance barrier

VaselineOctober 1, 2024

0 3 minutes read

Bitcoin drops below ,000 after rejection of resistance barrier

Bitcoin price is approaching its support level around $62,000; reversal is possible if it holds.
Ohio Senator Niraj Antani proposed a bill to allow tax payments with Bitcoin, while Metaplanet announced the purchase of 107.91 BTC.
BTC’s long-short ratio is at one, signaling a neutral sentiment among investors.

Bitcoin (BTC) is extending the correction and trading below $63,000 at the time of writing on Tuesday, approaching a key support level after falling more than 3% the previous day. There are some signs of optimism as Ohio Senator Niraj Antani proposed a bill to allow tax payments with Bitcoin, while Metaplanet added more BTC to its holdings. However, on-chain data signals neutral sentiment among traders as BTC’s long-short ratio is at one.

Daily Market Reasons: Bitcoin On-Chain Data Shows Neutral Investor Sentiment

Coinglass’ Bitcoin long-short ratio is 1.01, signaling neutral investor sentiment. When above 1, this ratio reflects bullish sentiment, suggesting that more traders anticipate the asset’s price to rise. The opposite happens if it is below 1.

Bitcoin long-short ratio chart

On Monday, Ohio Sen. Niraj Antani he posted on Twitter that he introduced a bill that would allow people to pay their state and local taxes with Bitcoin and other cryptocurrencies. This bill could lead to an increase in the use of cryptocurrencies in Ohio and open new avenues for the state’s financial obligations. If the bill passes, Ohio will be among the first states to officially accept cryptocurrency as payment for taxes and fees.

TODAY: We introduced a bill legalizing the use of cryptocurrency to pay state and local taxes and fees. Cryptocurrency is not only the future, it is the present. I am proud to be the most pro-cryptocurrency member of the Ohio Senate. READING: pic.twitter.com/9lpYdkoGWT

— Niraj Antani (@NirajAntani) September 30, 2024

Technical Analysis: BTC Approaches Key Support Level

Bitcoin price bounced back from its key psychological level of $66,000 on Saturday and fell 3.8% over the next two days. At the time of writing on Tuesday, it continues to fall below $63,000, approaching the key support level around $62,000.

If the $62,000 level remains as support, Bitcoin could rise to break above its key psychological level.

The Relative Strength Index (RSI) on the daily chart has declined and is currently pointing lower, trading at 50, suggesting a slowdown in bullish momentum. However, if it continues to decline and close below its neutral level of 50, it would indicate increased selling pressure and further decline in Bitcoin price.

BTC/USDT Daily Chart

If BTC breaks and closes below the $62,000 level, it could extend the 7% decline to retest the September 17 low of $57,610.

Frequently asked questions about Bitcoin, altcoins, stablecoins

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, which eliminates the need for third parties to participate during financial transactions.

Altcoins are any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and therefore an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of any stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who want to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies in general are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market cap to the total market cap of all cryptocurrencies combined. It provides a clear picture of Bitcoin interest among investors. A high dominance of BTC usually occurs before and during a bull run, where investors resort to investing in relatively stable and high market capitalization cryptocurrencies such as Bitcoin. A decline in BTC dominance usually means that investors move their capital and/or profits to altcoins in search of higher returns, which usually triggers a burst of altcoin rallies.

VaselineOctober 1, 2024

0 3 minutes read