Once again, history repeated itself. The liquidations of the market force the Bitcoin to the umpteenth reflection. In fact, market observers have noted that the benchmark cryptocurrency has lost traction after hitting new all-time highs, exceeding $ 60k.
The ups and downs of digital currency
On the same day, its value fell 5% to a daily low of $ 58.213. The bulls made three different attempts to retrace their steps, as planned for quotation of $ 60.000, but that price level was never reached as Bitcoin peaked at $ 59.400.
Not long after, Bitcoin eased slightly as a slight bearish wave hit the flagship asset, bringing it back to a low of $ 56.000. By the time we go to press, Bitcoin is down 4%, thanks to its slight correction. The leading cryptocurrency is now trading at a price of $ 57.318.
Expectations of a bear market decline are not a sentiment shared by Bitcoin analysts. They have rightly noted that the asset is suffering the effects of a recent million dollar liquidation in the market.
On-chain analytics site Glassnode captured the event in real time, showing how long positions on $ 130 million futures were liquidated. To date, there are countless reasons to remain bullish on Bitcoin, but the recurring pattern due to intense liquidation suggests it could get extremely dark before the market reaches the end of the tunnel.
Almost like Déjà vu, the same scheme has sent Bitcoin down. As we previously reported, a massive sale occurred when 185.350 deals worth $ 2,2 billion were liquidated. This saw Bitcoin make a sharp correction to $ 55.000. And this happened just a day after Bitcoin set a new high of $ 61.923.
There is no lack of optimism
But as we noted earlier, there are still good reasons to stay positive. First, the $ 1 trillion market cap has already been validated by investors, according to an on-chain analysis by Willy Woo. This means that Bitcoin will likely never see the market cap drop below that level.
Meanwhile, Woo noted that:
“The URPD is a price discovery magnifying glass, showing the price of the last time the coins were moved, assuming they were bought by investors. It should be borne in mind that currency movements do not always derive from purchases. For example, exchanges and users regularly move coins internally ”.
However, it still shows that bitcoin holders are long-term. As 28% of Bitcoin only moved after the asset passed $ 19.000. This reassures us that market participants are busy resisting the bearish trend.