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<p>The post <a href="https://coinpedia.org/news/cryptoquant-reveals-top-5-key-charts-why-btc-plunged-10-8-in-just-two-days/" rel="noopener noreferrer nofollow">CryptoQuant Reveals Top 5 Key Charts Why BTC Plunged 10.8% in Just Two Days!</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>In the past two days, Bitcoin dropped from $65,062 to $58,053, a decrease of 10.8%, as enthusiasm over potential Federal Reserve interest-rate cuts faded. Over the past three months, <a href="https://markets.coinpedia.org/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin has fallen</a> by 12% and is currently trading 20% below its peak of nearly $74,000 reached in March.</p>
<p>Maartunn, a leading author at CryptoQuant, has examined this recent market movement and highlighted five key charts that explain the dramatic changes in cryptocurrency prices.</p>
<h2 class="wp-block-heading" id="h-5-key-charts-on-the-recent-price-drop">5 Key Charts on the Recent Price Drop</h2>
<p>Maartunn, a prominent author at CryptoQuant, has analyzed the recent market movement and identified five key charts that help explain the dramatic shifts in cryptocurrency prices.</p>
<h3 class="wp-block-heading" id="h-short-term-holders-create-resistance">Short-Term Holders Create Resistance</h3>
<p>One significant factor in the recent drop is the resistance created by short-term holders. These holders, who bought Bitcoin at higher prices, are now experiencing losses. Earlier this month, Bitcoin’s sharp decline left these short-term holders with an average 17% loss.&nbsp;</p>
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   <p lang="en" dir="ltr">Traders were speculating on higher prices, which created a fragile environment.<br><br>Open Interest rose from $13.5B to $17.9B (31%) since August 5th, and Funding Rates remained positive, indicating a premium on perpetual contracts.<br><br>This situation often leads to instability in… <a href="https://t.co/G6c9fO6bbo" rel="noopener noreferrer nofollow">pic.twitter.com/G6c9fO6bbo</a></p>— CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1828707891982840042?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 28, 2024</a>
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<p>As the price recovered to their average cost, they sold around break-even, creating resistance that contributed to the ongoing price struggles.</p>
<h3 class="wp-block-heading" id="h-rising-open-interest">Rising Open Interest</h3>
<p>The rise in Open Interest up 31% from $13.5 billion to $17.9 billion since August 5th indicates increased speculation in the Bitcoin futures market. However, positive Funding Rates suggest a premium on perpetual contracts, further adding to market instability.</p>
<h3 class="wp-block-heading" id="h-bitcoin-etfs-inflow-in-green">Bitcoin ETFs Inflow In Green</h3>
<p>Amid the price decline, the U.S. spot Bitcoin (BTC) exchange-traded funds (ETFs) are experiencing strong performance, with eight consecutive days of net inflows <a href="https://x.com/lookonchain/status/1828477791232540801" rel="noopener noreferrer nofollow">totaling $195.65 million</a>.</p>
<p>Meanwhile, another led CryptoQuant’s author IT Tech noted that these inflows primarily came from large holders, adding additional strain to already unstable futures positions.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/26a0.png" alt="⚠" class="wp-smiley" style="height: 1em; max-height: 1em;"> I’ve noticed an increase in <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> inflows on spot exchanges.<br><br>What does this mean? <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f914.png" alt="🤔" class="wp-smiley" style="height: 1em; max-height: 1em;"><br><br><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/2728.png" alt="✨" class="wp-smiley" style="height: 1em; max-height: 1em;"> It could lead to selling pressure, so be cautious. I’ll keep you updated if I notice any changes. Keep an eye on my profile and click the bell to stay informed! <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f514.png" alt="🔔" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/mcS9tnYJKU" rel="noopener noreferrer nofollow">pic.twitter.com/mcS9tnYJKU</a></p>— IT Tech (@IT_Tech_PL) <a href="https://twitter.com/IT_Tech_PL/status/1828140382686978477?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 26, 2024</a>
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<h3 class="wp-block-heading" id="h-surge-in-long-liquidations">Surge in Long Liquidations</h3>
<p>The recent price drop has led to a significant increase in liquidations. Ethereum long liquidations surged to $55 million, and <a href="https://coinpedia.org/news/bitcoin-forms-new-cme-gap-at-61400-will-it-rebound-after-massive-price-drop/" rel="noopener noreferrer nofollow">Bitcoin</a> long liquidations reached $90 million, marking the highest levels since early August.&nbsp;</p>
<p>This surge in liquidations has caused Open Interest to drop by $2.2 billion, as many traders were forced to exit their positions.</p>
<h3 class="wp-block-heading" id="h-market-stabilization-needed-nbsp">Market Stabilization Needed&nbsp;</h3>
<p>The recent market turmoil has left many traders in precarious positions. As a result, the market will need some time to stabilize. Monitoring on-chain data in the coming days will be crucial for understanding future price movements and market conditions.</p>

CryptoQuant Reveals Top 5 Key Charts Why BTC Plunged 10.8% in Just Two Days!

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