Unstoppable: Bitcoin Breaks Records, Then Takes a Dive Before Soaring to New Heights and Causing $360M in Losses

As a proficient SEO and high-end copywriter, I have rewritten this HTML article to be 100% unique while maintaining its high quality and original meaning. The strong volatility in the cryptocurrency market has been a hot topic among investors, with Bitcoin (BTC) hitting new all-time highs before experiencing a sudden dip. The dip was quickly bought up, but altcoins struggled to rebound.

According to data from CoinGlass, the volatility liquidated $360 million of leveraged derivatives positions across all digital assets. This was mainly due to the sudden burst of volatility in Bitcoin, which saw it climb above $73,000 for the first time ever before slipping nearly 6%.

Despite this, Bitcoin is still outperforming the CoinDesk 20 Index, only down about 2% over the past 24 hours. Ether (ETH) is also outperforming with a 2% decline, while other altcoins such as Ripple (XRP), Dogecoin, and Litecoin (LTC) have tumbled 6%-8%. The only asset in the CoinDesk 20 that saw gains was Avalanche’s native token (AVAX), up 15% for the day.

The volatility also caused over $360 million worth of leveraged derivatives positions to be liquidated, with most of them being long positions betting on rising prices, according to data from CoinGlass. This was the largest long flush-out since the March 5 correction.

Amidst the sudden volatility, crypto investment services firm Matrixport noted that Bitcoin’s rally is showing signs of waning momentum. The report highlighted the divergence between high prices and declining relative strength index (RSI), a widely followed momentum indicator that assesses the speed and size of price changes for an asset.

While Matrixport has been generally bullish on Bitcoin since the end of January, they believe that the risk-reward analysis currently favors a period of consolidation. This bull market still has potential, but the divergence between a declining RSI and high prices could signal a need for Bitcoin to consolidate before experiencing another rally. The $69,000 area is seen as a key level of support for Bitcoin, similar to its previous bull market peak in 2021.

On Tuesday, the U.S. also saw inflation data that was higher than expected, with the Consumer Price Index (CPI) rising 3.2%. This could potentially discourage the Federal Reserve from cutting interest rates. Aurelie Barthere, principal research analyst at Nansen.ai, believes that while this may cause a short-term blip, it is unlikely to have a significant impact on the crypto bull market over the coming weeks.

Barthere notes that there is currently too much bullish momentum in the crypto market, and instead expects a repricing of expected Fed rate cuts. This has happened in the past few months without derailing the bull market, and Barthere believes that it will continue to do so in the future.

In conclusion, the cryptocurrency market saw a sudden burst of volatility, with Bitcoin reaching new all-time highs before experiencing a dip. The sudden volatility has caused liquidation of leveraged derivatives positions and has raised concerns about Bitcoin’s momentum. However, experts believe that the bull market is still intact, with potential for consolidation before another rally. The recent inflation data may have short-term effects, but is unlikely to significantly impact the overall market. It is still a hot topic among investors, and we can expect to see continued discussions and speculations about the future of cryptocurrencies.