Bitcoin Peaks at $69,324 Before Sharp Drop: Healthy Consolidation or FOMO Stage?
Summary:
Bitcoin (BTC) achieved a new all-time high of $69,324 on March 5, then abruptly fell 9.75% to $59,323. Analysts view this as a healthy consolidation phase. Market analyst Aksel Kibar identified it as the "Fear of Missing Out" (FOMO) stage. Other experts suggested that if past trends continue, BTC may fall further before it breaks its all-time high. Traders were caught unprepared for BTC's surge above $69,000, leading to over $1.17 billion in leveraged positions being liquidated in the last 24 hours.
Bitcoin (BTC) broke records on March 5, reaching a high of $69,324 soon after Wall Street opened for trading, only to plummet 9.75% to $59,323. Analysts have welcomed this decline, seeing it as a necessary consolidation step. BTC/USD data from Cointelegraph Markets Pro and TradingView highlights Bitcoin trading at a 9% deficit to its peak.
BTC's still maintains a 12% growth over the past week, yet the cryptocurrency's sudden drop left many wondering about its future direction. Market analyst Aksel Kibar indicated Bitcoin's edging past $69,000 as its phase of Fear of Missing Out (FOMO).
Kibar had earlier on March 4 spotted BTC's trend, ranging between $65,000 and $68,000, and nearing its November 2021 peak around $69,000. He cautioned investors against falling prey to FOMO at such levels. Alex Thorn, Head of Research at Galaxy Research, drew attention to Bitcoin's past performance, specifically its 2020 reversion upon establishing fresh records.
Hinting at a forecast based on past behavior, Thorn suggested BTC will likely fall another "11.3% over 15 days before breaking ATH" in the coming weeks. Some market spectators think that a setback to $50,000 in the market might offer a buying opportunity.
Ali, an independent analyst, noticed the TD Sequential Indicator's sell signal on the daily chart just before the price plummeted. This indicator has a history of accurate BTC trend forecasts this year. It signaled a purchase early in the year which was followed by a 34% increase and also signaled a sell in mid-February, ensuing in a 4.44% decrease.
However, despite some market participants' expectation for an extended pre-halving correction, John Bollinger, a technical price analyst, found the March 5 BTC price correction "a bit excessive."
Market data revealed that traders were unprepared for BTC's latest surge above $69,000. According to Coinglass data, the crypto market saw over $1.17 billion in leveraged positions liquidated in the last 24 hours, $846 million of which were long liquidations. BTC's long liquidations accounted for $236.33 million.
This article does not provide investment guidance or suggestions. Investing and trading entail risk, and readers ought to undertake comprehensive research before making a decision.
Published At
3/6/2024 4:29:55 AM
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