28.10.202107:47 Forex Analysis & Reviews: Bitcoin falls below $ 60,000

Bitcoin fell below $ 60,000 on Wednesday as the euphoria over the first US crypto ETF dissipated and traders began taking profits after another record high. It slipped 6.4% to $ 58,132, hitting lows in the past two weeks.

Ether also lost around 6%, while more volatile tokens such as Dash and EOS dropped more than 10%.

It is not unusual for Bitcoin to quickly tumble after another failed attempt to climb above 63,000. It also has to cool down a bit before starting a new round of growth. Hanging in a tight channel will be the best for now.

In any case, latest data show that the total liquidation of long positions on Wednesday exceeded $ 700 million, the highest figure since September 20. It seems that the market has been using borrowed funds for quite a long time, so the positioning was excessive. Many speculative traders could not withstand the pressure and rushed to fix positions opened with leverage, which led to a slight correction in Bitcoin.

Also, the ProShares Bitcoin Strategy ETF (ticker: BITO) accumulated over $ 1 billion just days after its launch last week. For crypto fans, this indicates widespread acceptance by investors. As such, despite the recent correction, many are awaiting the reaction of market players. They anticipate whether new players will appear and if they will bet on a further decrease in the short term.

On a different note, QuickNode reportedly raised $ 35 million in a series A funding round spearheaded by Tiger Global. It was also participated by Alexis Ohanian's Seven Seven Six, Soma Capital, Arrington XRP Capital and Crossbeam. "This round is a major milestone that helps us deliver on our vision of growth in Web 3 through better infrastructure, improved tooling and greater accessibility across all blockchains," said QuickNode Vice President Amol Shah.

The company explained that it will use the new funds to expand its product portfolio and support new networks. It also plans to work with a wide range of clients, from NFT platforms like Rarible to traditional financial institutions.

Technical analysis on Bitcoin

The head-and-shoulders pattern that was formed yesterday is currently being tested. If the bears break down $ 59,400, Bitcoin will slump to $ 54,444 and then go to $ 50,900. The 200 MA is 45,000.

But if the bulls manage to push the quote beyond $ 59,400, Bitcoin may soar to $ 62,800 and then go to $ 66,500.

Technical analysis on Ethereum

Ethereum has fallen from record highs, but this does not mean that it will succumb to a bear market. The recent downward movement is nothing more than a technical correction, so even if the price falls to $ 3,600 or hit $ 3,405, the current bull market will not end. What traders need to do is to maintain control above $ 3,950 because that will push the quote to $ 4,367.