But what could have caused the asset to collapse and the delayed transition to a new all-time high? Could it have been the deposit of bitcoin worth 1 billion dollars, on the main US exchange, Gemini?
Analysts pointed out that the recent Bitcoin transfer could be an important signal for a collapse in the price of the coin.
The price of bitcoin dropped to $ 57.568 in no time before hitting a low of $ 55.814, indicating that the selloff triggered by the massive whale relocation is still ongoing.
CryptoQuant chief Ki-Young Ju traced these motives to an earlier pattern that was pointed out last month when Bitcoin fell after a bullish reversal. On February 21, Bitcoin fell 26% in one day after a similar event occurred.
What Young Ju advises traders to do is to be very careful during this period, only leveraging if the bet can be sustained for as long as the bear market is moving.
As he said in his tweet, “This 18k BTC deposit is legitimate as it was a transaction between users' deposit wallets and Gemini's wallet. The average influx of all exchanges has skyrocketed due to this deposit. Do not undermine excessively if you are in a Long position ”.
However, on the subject of over-indebtedness, Bitcoin advocate Larry Cermak notes that the $ 1 billion worth of liquidated assets - traded in cash - could have been avoided if traders had minimized the amount they intended. exploit.
“We have just seen a liquidation worth over $ 1 billion in the past 30 minutes. People never learn and continue to over-exploit the market like crazy ”. He tweeted.
As the liquidation took place in less than an hour, it can be fair to say that this "forced liquidation" means that investors or traders at one end of the market have failed to meet the margin requirements for the position they are holding. initially it largely triggered the bear market.
Other analysts have spoken and pointed out some more important points as they anticipated the correction. Bitcoin backer Davinci Jeremie, known for urging people to buy Bitcoin since 2013, noted that market manipulation is underway. According to him, the whales specifically target retailers as usual.
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