Bitcoin is looking bearish while Ethereum miners are reaping more fee revenue than ever before.
- Bitcoin (BTC) trading around $11,298 as of 20:00 UTC (4 p.m. ET). Slipping 3.8% over the previous 24 hours.
- Bitcoin’s 24-hour range: $11,102-$11,786.
- BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.
Read More: ‘Bitcoin Rich List’ Reaches All-Time High
Bitcoin’s price declined to as low as $11,102 on spot exchanges such as Coinbase Tuesday, wiping out long derivatives traders on BitMEX. In just one hour, up to $5.6 million in leveraged positions were automatically liquidated, the crypto analog to a margin call.
Daniel Ladinsky, trader at quantitative trading firm Efficient Frontier, worries that if price stays beneath $12,000 per one BTC for too long it may signal a larger downward trend. “BTC has been hovering below $12,000 for quite some time, which is a crucial zone,” Ladinsky told CoinDesk.
Michael Gord, CEO of cryptocurrency brokerage firm Global Digital Assets, sees Tuesday’s price dip as temporary profit-taking by some investors. ”Institutional traders take profits the whole way up to hedge their risk,” he said. ”We are now seeing more institutional traders take some of that profit and reallocate it into ‘riskier’ low- to medium-cap altcoins.”
One interesting development: Bitcoin locked in decentralized finance, or DeFi, is down a little bit after it had previously doubled in August, according to data aggregator DeFi Pulse.
Efficient Frontier’s Ladinsky says traders continue to see more alluring profit opportunities in DeFi, which might help explain the decline. “Recently, the market has been quiet for BTC and most of the…