Bitcoin Prices Have Fallen Back After Approaching $65,000

The digital currency, the world's largest by total market value, fell to roughly $57,850 today, according to Coinbase data provided by TradingView.

Bitcoin prices fell again on August 28, dropping to less than $58,000 after approaching $65,000 earlier this week.

The world’s largest cryptocurrency by total market value declined to roughly $57,850 today, according to Coinbase data provided by TradingView.

Bitcoin prices hit a high of more than $64,800 on August 25, additional Coinbase figures from TradingView show.

After reaching its highest level in nearly three weeks on August 25, bitcoin may have changed course and started trending lower as a result of encountering strong technical resistance close to the $64,000 price point, according to Julio Moreno, head of research for CryptoQuant.

“The selling could have been triggered by technical factors as the price found resistance around the $64K mark, which is the On-chain trader’s realized price, a key technical level,” he stated.

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The chart below depicts this on-chain realized price along with the corresponding profit or loss:

Bitcoin's on-chain realized price, along with its profit or loss

On August 26, as bitcoin was already heading lower, a significant amount of the cryptocurrency flowed onto spot exchanges, according to additional CryptoQuant data.

The substantial movement of the digital currency onto these marketplaces, which happened again on August 27, signaled selling pressure, Moreno noted.

The chart below illustrates these movements:

Bitcoin inflows to spot exchanges

These developments helped accelerate bitcoin’s downward movement, he claimed.

The decline in bitcoin caused a long squeeze, meaning that many traders had to liquidate their long positions as the cryptocurrency fell in value.

Steven Lubka, head of Swan Private at Swan Bitcoin, singled this out as a major contributor to the notable decline the digital asset suffered over the last several days, clarifying this via email.

The chart below illustrates the sharp increase in liquidations that took place on August 27:

Bitcoin long liquidations

Another major factor that analysts singled out as having an impact on bitcoin’s recent price movements was the market’s response to the latest financial results issued by chipmaker Nvidia Corporation, which trades under the ticker symbol NVDA.

Tim Enneking, managing partner of Psalion, commented on these results, as well as the impact they had on a wide range of risk assets.

“As for today’s specific move, it’s correlated with fiat markets and the outlandish expectations for Nvidia revenue and profit – which exceeded predictions in all cases, but didn’t blow out the high end of the various analysts’ ranges,” he stated via email.

“So it’s down 8% (as of this writing) in after-market trading and has been dragging every risk-on market down for the past 24 hours or so because of ‘fear’ of precisely these results,” Enneking added.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.