Bitcoin remained over $90,000 following the military operation of the United States in Venezuela. Market did not plunge into a sharp decline and it exhibited strength in relation to rising geopolitical tension. Analysts asserted that the coin’s response was an indication of stability.
Is Bitcoin Becoming More Resilient To The Shock Of Macro Events?
Crypto analyst Michael van de Poppe said that he was not anticipating a mass correction following the strike. He said that the event was planned and the markets were already priced in when trading momentum returned. Van de Poppe further mentioned that fear of further correction in the cryptocurrency’s price was not very high due to low expectations of an escalation.
BTC price recorded a small increase in the last day. According to TradingView, BTC traded between $89,900 and $91,600 during this period. The chart showed intraday rebounds, which confirmed that buyers defended key support levels.
This price action confirmed that the asset is maturing and becoming more immune to external shocks. Investors are showing more importance to market structure than macro events and this will mitigate the immediate fear-driven liquidation.
Bears Lose as Bitcoin Price Rises
Bitcoin has previously responded to geopolitical occurrences. In most instances, it experienced temporary declines but which were succeeded by rallies. This time the trend was not the same since the crypto retained its price movement even as more updates about the news surfaced.
Another crypto analyst Tyler Hill observed that the crypto market sometimes decline when traders anticipate strong correction. He mentioned that this was a less tense situation since anticipations of long-term blowback are not so high. Hill indicated that the stable state can be considered a sign of strength.
Such resilience is also in line with macro flows. Fed liquidity coincided with Bitcoin gains, which showed how funding support can boost confidence in the cryptocurrency.
Liquidation data indicated that there were more losses incurred in short positions than long positions. Losses on short position losses was about $65 million in the last 24 hours compared to about $3 million for long positions within the same period.
This meant that traders that had expected a fall were taken by surprise as Bitcoin surged. The response confirmed that the buyers were active in the $90,000 zone.
Source: https://coingape.com/bitcoin-holds-above-90000-despite-u-s-venezuela-strike/
