Bitcoin Bounces Back Swiftly After $10,000 Drop Amid Continued Market Volatility
Summary:
Bitcoin (BTC) is quickly bouncing back from its substantial $10,000 dip as market volatility persists. Although the dip led to $1.17 billion worth of cryptocurrency liquidations, the demand for Bitcoin remains robust. Market structure studies reveal a renewed situation with a slight reset in funding rates, and indicators suggest a shift in large investor expectations. Observers also draw parallels between current BTC price behavior and late 2020 patterns, when the cryptocurrency rebounded strongly after a sudden pullback.
Bitcoin (BTC) is swiftly countering its substantial price decline of $10,000 BTC as constant fluctuations continue to rattle the market. Information from Cointelegraph Markets Pro and TradingView suggests that the BTC/USD pairing has already managed to recoup over half of its losses from March 5th. That day saw the cryptocurrency reclaim its record highs from November 2021, only to face the trap set by savvy cryptocurrency investors who anticipated a spike in the over-leveraged market.
According to the popular Bitcoin commentator Hodlonaut, despite the rapid dip, the demand to possess bitcoin hasn't dwindled. This scenario was essentially an instance of major investors manipulating the market, causing less knowledgeable or over-extended small investors to fall into a trap.
Monitoring tool CoinGlass revealed that following the drop, which concluded around $59,300 on Bitstamp, there was $1.17 billion worth of total cryptocurrency liquidations - with the lion's share belonging to long projections.
A review of the market structure reveals a refreshing outcome, as exchange funding rates have witnessed a slight deviation from unsustainable levels. As well, similar trends involving open interest are emerging. However, recent predictions show this aligning with the BTC price rebound after an initial $3 billion decline.
Meanwhile, trading resources such as Material Indicators suggest that expectations among large investors may be evolving. A hefty bid liquidity block on the massive global exchange, Binance, has moved higher, possibly buffering the fall from $69,000.
Material Indicators noted substantial activity on February 28th, where large investors moved $54M in BTC USDT bid liquidity on Binance from the $36k - $38k range and transformed it into a buy wall at $52k. Today, more than half of that buy wall has shifted, turning into a bid ladder that ascends from $60k to $65k.
Though it’s early days to predict the extent of this pullback, it's clear that an influential entity is either wary about the price not dipping to $52k or is unwilling to let it drop that far.
An ongoing discussion loosely compares the current BTC price behaviour to its performance in late 2020, when it crossed the previous high-water mark. At that point, BTC/USD also experienced a sudden pullback, lingering below the record highs for about two weeks before strongly rebounding.
This report is not an investment guide or suggestions. Each investment and trading move carries risks, and every reader should undertake their independent research before making a decision.
Published At
3/6/2024 11:38:16 AM
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