Breaking the 30k band could push Bitcoin price into the $28,000 region
Bitcoin started the new week on a cold note. The leading cryptocurrency fell to an intraday low of $30,400 on the Bitstamp exchange.
Image from tradingview.com
According to data provided by IntoTheBlock, the number of open contracts, which shows the accumulated amount of open positions in the futures market, continues to increase.
In particular, the OI perpetual swap surpassed $10 billion for the first time since May 19, the day Bitcoin collapsed nearly 30% in a matter of hours.
Image by intotheblock.com
This indicates that short positions continue to pile up despite Bitcoin recently posting its worst weekly close since December 2020.
It remains to be seen whether bulls will be able to vigorously defend the $30,000 support much longer.
Markets turn red across the board
In addition to Bitcoin, stocks are under pressure, with the S&P 500 index opening 1.3% lower. Nasdaq also fell 1.43%.
Although crypto’s have been down for months, the continued correction may be a scary warning to some stock market investors, given that all major indices managed to scale new highs last week.
Gold is stabilizing during today’s trading session after falling nearly 1% previously.
Oil was also in the red after OPEC+ agreed to increase production.
— jeroen blokland (@jsblokland) July 19, 2021
Meanwhile, the US Dollar and Japanese Yen are trading higher as investors move to safe haven trading.