Bitcoin extends down: Here are the main drivers behind the retreat star-news.press/wp

The current declining trend of Bitcoin extended to another day, which increased the investor’s concern and enhancing uncertainty in the broader market. Since the decline in the late response, BTC price It has decreased steadily, as it is now re -interrogating the threshold of $ 113,000. While the declining pressure is intensifying, several decisive reasons have been observed that they lead to continuous low prices.

Why the bitcoin price decreases

After failing to maintain important support levels, Bitcoin It is still trading under pressure due to a mixture of zakat on the market. The Arab market experts have experienced the continuous decline, which started at the end of July, as it presented visions on this trend in a modern rapid publication on the encryption platform.

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Exchang In the withdrawal, market experts classified development under three main factors that also offered a decline. These main factors also contributed to the previous upward trend, which raised questions about The next price path for BTC.

The first driver behind the continuous declining trend highlighted by the Arab series is the collapse of liquidity inventory. Since mid -July, the liquidity ratio, which is measured by the number of months of liquidity available for sale on the platforms, began to decrease quickly and reached unprecedented levels by a little more than three months ago.

Given the sharp decrease in the amount of bitcoin currently available for purchase, this reference indicates the supply crisis. Usually, when this happens in health markets, it leads to an increase in prices due to scarcity. However, exactly the opposite.

Without new and Effective purchase The demand, whether from major investors or trading investment funds, the market has become fragile and unable to withstand even the smallest sale orders without testing a decrease in prices. In this case, the fragility of the market is similar to those in the delicate markets, as the limited liquidity inflames the impact of any sale movement, regardless of its size.

The second main engine of the aforementioned Arabic series is volatility and instability in the ETF request. After sharp and rapid peaks in BTC ETF orderIt follows strong negative mutations. This development indicates that during the times when the capital was withdrawn from the circulating investment funds, the flows to the money were intermittent and unstable.

As flows stumbled, there was no alternative request to compensate for this deficiency. Moreover, with insufficient liquidity, this led to a decrease in price support from the largest institutional buyers (ETFSPaving the road for low prices.

Slow and steady accumulation of smart addresses

The accumulation of the limited and weak smart wallet was the last factor that market experts referred to who contributed to low prices. As shown on the graph by a pink, smart area The headlines were accumulating Bitcoin. However, it was often moved slowly and by feeling, with no noticeable mutations in the purchases.

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Despite the fact that accumulation is usually positive, these slow and restricted titles were unable to provide meaningful help during the market weakness. This is because there was an inherent demand, but it was not active or timing with a decrease in market flexibility.

Distinctive photo of Pixabay, Chart from TradingView.com

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