Bitcoin tumbles at high levels, shorts find opportunities as U.S. regulation tightens

On the occasion of the overseas Thanksgiving holiday on November 26, Bitcoin staged a "thousand knives" plunge. Bitcoin plummeted from a high of 18,913 US dollars, once fell to 16,354 US dollars, a decline of 10.2%. Since October, Bitcoin has risen all the way, from $10,000 to $19,500, nearly doubling. It is only one step away from the historical peak of 19,783 U.S. dollars at the end of 2017. Today, Bitcoin and other digital assets have plummeted, which really surprised many people.

Huobi Research Institute believes that today's Bitcoin and the overall market have plummeted, which is the first large-scale correction since this wave of rise. The first reason is that Coinbase started to prevent customers from making new margin transactions, canceled all outstanding limit orders, and completely terminated the margin trading function next month. Since Coinbase did not fully disclose the specific guidelines of the CFTC, the compliance boundary of the future trading market is not clear, and there is a certain panic in the market.

In addition, because the United States is in the Thanksgiving holiday period and the heavy warehouse institutions are on holiday, the bears are caught off guard by the force at this time. Bitcoin has recently continued to rise, and the market has accumulated a large amount of profit. Shorts have found an opportunity as the United States has tightened the supervision of institutions. The market has formed a certain resonance along with the trend, so there has been a relatively large decline. At the end of the year, the global market is facing a gradual tightening of funds, and the bulls have lower expectations for incremental funds, so they have made certain profit-taking actions.

After all, if you start from the low point in March this year, the price of Bitcoin has doubled nearly five times this year. On the whole, a unilateral rise in the market is not a sign of market health. A certain pullback in the market is a sign of market health. The market outlook needs to pay attention to the support situation near the 16,000 integer mark.

BTC pulled back sharply in the day, and the trading volume was obviously enlarged

According to data from the Huobi trading platform, BTC pulled back sharply within the day, with the lowest falling to 16354.28USDT. At the one-hour level, this wave of BTC's decline started in the early morning, and there were two significant increases in trading volume during the period. This wave of callbacks may be caused by a combination of many reasons. First, Coinbase did not fully disclose the specific guidelines of the CFTC, and the market appeared. A certain panic; secondly, due to the Thanksgiving holiday in the United States, the short-selling longs were caught off guard, and the market profits resonated. As the end of the year was approaching, the longs had lower expectations for incremental funds, and they also made a certain profit. The lower support level may be at the Fibonacci 0.382 position, which is the retracement of the overall upward market, which is near the 16000 integer mark. In the evening, continue to pay attention to the changes in trading volume and the support of the lower support level.

According to data from the Huobi trading platform, the ETH and BTC market have a high degree of similarity, and they also have a sharp correction in the day, as low as 481.30USDT. At the one-hour level, ETH has also experienced two volume enlargements, both of which were accompanied by a short-term rapid drop. During this period, there was a certain short-term contraction sideways, indicating that the short-term effort was mainly caused by institutions. , The short-term profit in the market also played a certain resonance role. On the daily level, it has basically returned to the high point of the previous round of rising prices after falling today. In the evening, continue to pay attention to changes in trading volume and the support of the 500 integer mark below.

In terms of contracts, the big data of Huobi Contract showed that BTC contract holdings increased slightly, contract trading volume increased slightly, and the contract market was active. The basis of delivery contracts rose slightly, and the funding rate of perpetual contracts rose slightly.

ETH contract holdings increased slightly, contract trading volume increased slightly, and the contract market was active. The basis of delivery contracts rose slightly, and the funding rate of perpetual contracts rose slightly.

USDT is quoted at 6.53 yuan in the OTC market of Huobi Global.

According to data monitoring by Huobi Research Institute, the total amount of DeFi locked up (TVL) today dropped slightly to 1.511 billion U.S. dollars, and the actual locked up volume dropped slightly to 9.93 billion U.S. dollars. Among them, the top items all experienced different degrees of decline, and Synthetix saw a larger decline, reaching 24.10%. Today's total Defi transaction volume has risen sharply, reaching 1.08 billion U.S. dollars. Among them, the top items have seen rises to varying degrees, and Curve has a larger increase, reaching 167.44%.