What caused Bitcoin to fall below $60,000 after Coinbase listing?

Bitcoin (BTC) prices fell below $60,000 on April 17 after a strong rally over the past week in anticipation of Coinbase’s Nasdaq listing.

However, after COIN (the ticker symbol for Coinbase’s shares) went public, the cryptocurrency market began to correct.

BTC/USDT 1-day price chart (Binance) Source: TradingView.com

Bitcoin sell-off expectations cause decline

Coinbase's listing has drawn a great deal of attention to the cryptocurrency market. It marks the first public listing of a major cryptocurrency exchange and is expected to bring high institutional demand.

As a result, the cryptocurrency market rallied ahead of the Coinbase listing, with Bitcoin hitting a new all-time high of over $64,000. However, given the tendency of cryptocurrencies to sell off after major events, it was almost expected that Bitcoin and Ethereum (ETH) would fall after the Coinbase listing.

Another major factor contributing to the decline in Bitcoin prices is the relatively high funding rate for long Bitcoin. This, along with strong technical resistance between $64,000 and $65,000, may be the reason why BTC is testing the $60,000 support level after the hype around the Coinase listing began to subside.

Bitcoin funding rate source: Bybt.com

Meanwhile, $60,000 is an important price level for Bitcoin as it took about a month for the cryptocurrency to break through this level.

Therefore, it is very important for Bitcoin to hold the $60,000 support area to maintain the bullish structure into next week.

Traders predict what might happen next

Meanwhile, cryptocurrency traders have different views on the trend of Bitcoin's new weekly candle chart.

For example, Cantering Clark, a popular cryptocurrency derivatives trader, said the market is not necessarily bullish or bearish based on options data.

Open interest in the Bitcoin options market is changing Source: Bybt.com

Instead, Clark noted that options market trends suggest that Bitcoin could see sideways movement, which would imply consolidation around $60,000. He wrote:

“The $50,000 and $80,000 contracts have the highest notional BTC contracts, and I think people who opened those contracts will be happy, and I still think that Bitcoin will start to turn around from the end of April to the end of May and become less bullish. There are no price breakouts, just price fluctuations and cycles.”

Traders remain optimistic about Bitcoin in the long term. An anonymous trader named “Crypto Capo” pointed out that based on historical trends, Bitcoin has already broken out of the range it was in 1,000 days ago.

The trader stressed:

“Now for some technical analysis of Bitcoin. Bitcoin has broken out of its accumulation range for over 1,000 days, which generally indicates a bullish continuation for BTC. Compared to its previous ATH (all-time high price), Bitcoin is currently only up 200%.”