Bitcoin Faces Fresh Volatility at $71,754; Market Analysts Discuss Liquidation of Short Positions
Summary:
Bitcoin experienced fresh volatility hitting a two-week high of $71,754 on Bitstamp, before a rapid market correction led to a 4% drop. Encouraging data was noted for the USA's spot Bitcoin exchange-traded funds (ETFs), with inflows exceeding $400 million the previous day. Market analysts discuss the necessity for liquidating short Bitcoin positions, with bids accumulating around the $69,000 mark. Renowned trader, Crypto Ed, suggests this price could signal an appropriate entry for long trades and doesn't indicate a significant market rollback.
Bitcoin experienced a new bout of volatility as Wall Street started trading on March 27, with market watchers stating that a sell-off in short positions was imminent. Observations from Cointelegraph Markets Pro and TradingView saw Bitcoin's price volatility as it reached $71,754 on Bitstamp, hitting a two-week high. Shortly after, a rapid market adjustment led to a sharp $1,300 fall in just minutes, accumulating to over a 4% drop as investors scrambled to convert the crucial $69,000 level into a support zone.
There was positivity regarding the USA's spot Bitcoin exchange-traded funds (ETFs) with continued encouraging dynamics. After a whopping inflow exceeding $400 million just the day before, Wall Street's early trading witnessed a relatively minor outflow of 1,300 BTC (equivalent to $91 million) from the Grayscale Bitcoin Trust (GBTC), as per reports by the crypto analytics company Arkham, provided by popular trader Daan Crypto Trades.
Daan added in a subsequent post, acknowledging the current heightened volatility and observing a considerable wall of Bitcoin sell orders being met at peak prices. The necessity for liquidating short Bitcoin positions has now become a central conversation among market analysts. Lately, bids were seen accumulating around the $69,000 mark on the CoinGlass on-chain tracking resource, a potential buffer if the market trends downwards.
Looking further, another trader CrypNuevo opined on the possibility of an onslaught on the final group of shorts encircling the recently achieved highs of $74,000. He suggested in a post that the market is more likely to target the upside liquidations at $74,100 as it's within closer proximity to the present price.
As the BTC price hovered at $68,500 while this report was being compiled, Crypto Ed, a renowned trader, was among those counselling restraint. In his most recent YouTube video, he stated that this price point could be an appropriate entry for long trades and did not signify a significant market rollback. He speculated that the next significant movement could take BTC price up to around $73,000 before experiencing another dip, setting the stage to challenge the record-high peaks.
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Published At
3/27/2024 5:20:09 PM
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