Bitcoin Takes a Tumble: Groundhog Day in the Cryptocurrency World
The recent surge in Bitcoin‘s price has once again hit a major obstacle, as large selling activity on exchanges has caused the rally to stop just shy of $70,000.
This is not the first time this week that Bitcoin has experienced such a situation. On Tuesday, the cryptocurrency briefly reached a high of $69,200 before encountering a correction. However, this time the decline was not as severe.
According to data from CoinGlass, the liquidations of leveraged derivatives trades during the sell-off on Friday amounted to $240 million. While this may seem like a significant amount, it was significantly less than Tuesday’s massive $1.2 billion liquidations.
One factor that may have contributed to this is the fact that the market was not as heavily leveraged as it was during the previous sell-off. This shows that traders were more cautious and not as willing to take on high levels of leverage in their trades.
Interestingly, the sell-off was triggered by a resistance level of nearly 1,000 BTC worth around $70 million on Binance and OKX exchanges. This type of selling activity creates a ceiling for further gains, causing the price to quickly drop.
The overall market reaction to this reversal from all-time highs was not as severe as the one on Tuesday. This time, Bitcoin only dropped by a few percentage points before stabilizing at around $66,500. In comparison, on Tuesday, the cryptocurrency plunged by as much as 14% before finding support at $59,000.
In addition, more recent data shows that the selling activity on Friday was not as severe as the previous one either. Liquidation data from CoinGlass shows that the market was not as frothy with leverage, indicating that traders were more cautious this time around.
UPDATE (March 8, 16:59): The article has been updated with additional liquidation data.
This latest development once again highlights the volatile nature of the cryptocurrency market and the importance of staying informed on current market conditions. It is important for traders to carefully manage their positions and assess the risk involved to avoid significant losses.
As always, the cryptocurrency market remains unpredictable, and it is always prudent to approach it with caution and careful analysis.
The article above discusses the recent volatile movement of Bitcoin’s price, as the cryptocurrency reached new all-time highs of over $70,000 before encountering significant selling pressure. The second time this has occurred this week, market data shows that the liquidation of leveraged trades amounted to $240 million, significantly less than the previous correction of $1.2 billion.
Furthermore, the article highlights the importance of careful risk management and staying informed on current market conditions in order to navigate the unpredictable nature of the cryptocurrency market.
