Bitcoin (BTC) price is on the ropes once again, struggling to gain enough bullish momentum.
Bitcoin (BTC) price is on the ropes once again, struggling to gain enough bullish momentum.
Earlier this Thursday, the largest cryptocurrency fell below the $65,000 level on major spot exchanges, according to data provided by CoinGecko.
In the last four hours alone, more than $37 million in long positions have been liquidated, CoinGlass staff shows.
However, short positions continue to lead liquidations in the last 24 hours, approaching $120 million.
A short-lived bounce
On Wednesday, Bitcoin bulls mustered enough strength to convincingly push the price of the largest cryptocurrency above the $67,000 level following dovish comments made by Federal Reserve Chair Jerome Powell. In fact, Bitcoin even briefly managed to break above $68,000 before retreating lower. However, this level of resistance has proven very difficult to overcome.
The rally ended up being a bull trap, and Bitcoin shaved off a substantial portion of its gains. It remains to be seen if Bitcoin will remain range-bound during the remainder of this volatility. The bears, however, appear poised to make another attempt to push Bitcoin price below the $60,000 level after failing to do so on Wednesday.
Is grayscale to blame?
The massive outflows recorded by Grayscale’s GBTC seem to be fueling bearish sentiment as of now. On Wednesday it lost another $281 million, recording the largest capital outflows in history.
That said, prominent ETF analyst Eric Balchunas recently dismissed the impact of Grayscale’s exits on Bitcoin price action, arguing that they are larger forces at play. On top of that, he pointed out the fact that there is no direct correlation between ETF flows and the price performance of the flagship cryptocurrency.
