After hitting its all-time high of $69k yesterday, Bitcoin crashed to $59k. However, it has made a pullback. As of 10:37 GMT+3, Bitcoin was trading at $66,152.
The ongoing Bitcoin price action has a lot to do with the high level of leveraged trading as Bitcoin approached its all-time highs. There were lots of short-term traders who expected Bitcoin to make a rally past $70k immediately after it made its all-time highs.
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However, due to the increase in volatility as Bitcoin approached all-time highs, leveraged long positions were liquidated and added to the downside pressure on the price. Between Bitcoin hitting its all-time highs and the correction, more than $1 billion of leveraged long positions were liquidated.
Over $1 billion in leveraged positions were liquidated when #Bitcoin plunged 15%. pic.twitter.com/0lbIhrim0K
— Cointelegraph (@Cointelegraph) March 6, 2024
With the overleveraged positions cleared, Bitcoin seems to have regained its footing. The price has climbed steadily for the better part of the day and is getting closer to retesting its all-time highs again.
ETF Volumes Hit All-Time Highs
The number of long-term investors coming into Bitcoin is rising, too, as evidenced by the inflows into ETFs. Today, the volume of Bitcoin traded on ETFs has hit an all-time high of $10 billion. This indicates that institutional investors continue to take positions in Bitcoin in anticipation of new highs.
JUST IN: 🇺🇸 Spot #Bitcoin ETFs broke a record $10 billion in trading volume today 🤯 pic.twitter.com/ZTOmad6QQ0
— Bitcoin Magazine (@BitcoinMagazine) March 5, 2024
Hype is starting to build up on Bitcoin as well. Once Bitcoin price hit its all-time highs, the news was reported across all mainstream media. Bitcoin has also been a top trending social media topic for the last 24 hours. Investors who didn’t believe Bitcoin would make a comeback after it fell below $20k a while back now have a reason to believe in Bitcoin. This means the FOMO phase could start now as investors anticipate a new hype cycle that could push Bitcoin to prices in the hundreds of thousands per coin.
The excitement and potential FOMO are based on Bitcoin’s history immediately after it pushes through its all-time highs. In the last crypto bull cycle, Bitcoin’s price tripled in just over 100 days after breaking through the previous all-time highs. Going by these cycles, there are market expectations that Bitcoin could be headed to prices above $200k in the next 100 days or so. Anticipation is even higher that with the ETFs, Bitcoin could be headed to much higher prices due to the money flow from institutional investors.
The last time #Bitcoin surpassed its ATH, its price tripled in just 103 days. That would take the Bitcoin price to $213,000 by June if this is repeated.
Are you mentally prepared? pic.twitter.com/ZmuJsriJS6
— Vivek⚡️ (@Vivek4real_) March 6, 2024
Overall, the current rebound in the price of Bitcoin is due to the clearing of over-leveraged long positions and the fact that institutional money continues to flow into Bitcoin, with ETF trading volumes now at an all-time high of $10 billion.
Bitcoin Bounces Back After A Dip To $59k, A Signal To Rising Bullish Momentum
Bitcoin is on the rise and is close to rolling back all the losses from yesterday’s dip from $69k to $59k.
After a quick drop to $59k yesterday, Bitcoin has recovered most of those losses and is currently trading at $66k with rising volumes. This is an indicator that the number of buyers entering the number of buyers entering the market is on the rise in anticipation of much higher prices. If Bitcoin bulls can push the price through the $69k resistance, it would confirm that bulls are firmly in control. In such a scenario, Bitcoin could easily end the day at prices above $80k as FOMO builds up.
However, two scenarios could play out if the bulls fail again at $69k. The first is a consolidation between $69k and $59k as the price finds the next direction ahead of the halving.
On the other hand, if short sellers take control and push Bitcoin through the $59k support level, then prices below $55k could come into focus within the day.
Bitcoin Price Prediction – Why $80k BTC Is Most Likely Today
While a consolidation or a bearish reversal is possible, the odds favor a significant break above the $69k resistance. That’s because the price has steadily recovered from yesterday’s dip, reapproaching the $69k all-time high with high volumes.
This indicates that the flash drop was due to overleveraged longs liquidation and that the overall price momentum remains bullish.
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