Bitcoin Teeters Near Record Highs; Coinbase Suffers Another Outage Amid Market Volatility
Summary:
Bitcoin nearly reached a new record high of $69,000 on March 5 before experiencing a rapid market dip. The volatility led to the liquidation of about $20 million in long positions. The cryptocurrency trading platform Coinbase endured another system outage during this time, leading to customer complaints. Despite these hiccups, many market players remain optimistic about Bitcoin's potential to break the final barrier to price discovery.
On March 5, Bitcoin (BTC) came tantalizingly close to setting new record highs before experiencing a sudden sell-off. Tracking by Cointelegraph Markets Pro and TradingView showed that Bitcoin's price trajectory nearly reached the $69,000 benchmark. Despite an impressive single-day increase of $5,000, the resistance to breaking new record highs was evident, causing the cryptocurrency to rollback to $66,000. The market was then rattled by a rapid $2,000 dip that occurred in just three minutes, leading to the liquidation of roughly $20 million worth of long positions, according to data from CoinGlass. This sudden market shift briefly impacted the record high of open interest, which soon rallied back to approximately $31 billion.
In a concerning déjà vu moment, Coinbase, America's largest cryptocurrency exchange, was stricken with another system outage. Like the one that occurred just last week, balances erroneously appeared as zero, and consumers' dissatisfaction mounted. James Van Straten, a researcher at CryptoSlate, noted increased speculation and leveraged trading compared to the previous Bitcoin bull run, arguing that Coinbase possessed the technical capabilities to manage the load and suggesting other factors were influencing the outages.
Coinbase's support account later confirmed that the issue had been resolved and normal operations had resumed.
In a discussion surrounding whether Bitcoin could bypass the last barrier to price discovery, many influential market players expressed optimism. Trader Kaleo compared the current market to the 2020 breakout, where Bitcoin shattered its then all-time high of $20,000 and continued rising. Another trader, Jelle, dismissed the idea that Bitcoin would stall at $69,000 and form a "triple top" pattern.
Jelle further anticipated an accelerated growth for altcoins following Bitcoin hitting a new record high, adhering to a historical trend. "We've seen this history repeat," Jelle said. "Stop seeking bearish signals. Adapt. The market will keep rising."
This news piece does not offer investment guidance or advice. Investments and trading decisions come with risks, and it is recommended that readers conduct their own research prior to making a decision.
Published At
3/5/2024 11:43:33 AM
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