Bitcoin Market News: Bitcoin Price Shows Cracks After Two Impressive Weeks

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Bitcoin price resilience finally crumbled this week after two weeks of strength following the so-called ‘BearWhale’ slaying. The price opened the week at $386, holding steady until mid-week, when it began a steep decline. It closed at $346, shedding $40 over the last seven days.

The bitcoin price deterioration follows a strong rally from $295 on 6th October to a high of $405 about a week later. Trading held steady until this week’s drop, even as the wider financial markets tumbled in mid-October. A look at the swaps activity on Bitfinex reveals more bearish indicators. The sum of active BTC swaps began to rise sharply on 25th October suggesting that traders are betting that the bitcoin price will fall further.

A BTC swap takes place when traders borrow bitcoin at one price to trade it for US dollars, hoping the price will fall by the time they purchase bitcoin again to return it to the lender. Total BTC swaps on Bitfinex nearly doubled from 8,799 BTC on 25th October to 16,281 BTC the next day.

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A look at the swaps activity on Bitfinex reveals more bearish indicators. The sum of active BTC swaps began to rise sharply on 25th October suggesting that traders are betting that the bitcoin price will fall further.

A BTC swap takes place when traders borrow bitcoin at one price to trade it for US dollars, hoping the price will fall by the time they purchase bitcoin again to return it to the lender. Total BTC swaps on Bitfinex nearly doubled from 8,799 BTC on 25th October to 16,281 BTC the next day.

Examining the swap data in greater detail also suggests that shorts profited from the mid-week price drop. Bitcoin swaps spiked as the price tumbled on the morning of 23rd October, potentially driving the price down.

Bitcoin Financial News

As the week ended, total active swaps stood at over 18,000 BTC, the highest level since April 2013, according to Bitfinex data. Swap volume also depends on the amount of customers using a particular exchange, of course, and Bitfinex’s trading volume and user base has only become significant since last October, according to Bitcoinity volume data.

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