After a record liquidation over the weekend, Bitcoin price bounced back above $ 57,000 and regained around $ 3,000. On Monday at 14:21 GMT, the price of the coin traded at $ 56,367, up 2.32% over the past 24 hours.
In the fall on Sunday, around $ 9.79 billion bleeding from long positions, resulting in one of the largest liquidation events in all of crypto history.
Historical liquidations drop prices to hash rate FUD
The sell-off was attributed to several FUDs, including Coinbase founders, who sold their shares in the recent slump in the Bitcoin hash rate. However, the market appears to be gradually recovering and analysis on the chain shows that the bull run is far from over.
Crypto analyst Jeff Dorman posted the following on Twitter yesterday:
– incorrect analysis of $BTC hash rate decline
– incorrect analysis of how much $COIN insiders sold
– most likely false (or at best unsubstantiated) rumors of US Treasury charging financial companies over crypto money laundering
Result: Huge selloff/liquidations
— Jeff Dorman, CFA (@jdorman81) April 18, 2021
Dover Wan pointed out that Bitcoin price has been trading in the over $ 58,000 area for almost two months, and that foreign exchange reserves are still down 12%.
Bitcoin price vs all exchanges Bitcoin reserve since we start ranging from 58k for almost 2 months now. Price was pretty much flat but reserve down -12%
Yesterday there was a major outflow from Binance again during the sell off pic.twitter.com/J9hzbQoMP6
— Dovey “Rug The Fiat” Wan🪐🦖 (@DoveyWan) April 19, 2021
Even with such a deep sell-off, exchange rate outflows appear to continue. The Binance exchange recorded one of the highest bitcoin outflows on the day of the sell-off.
Coinbase Pro outflows, dubbed the most bullish signal of all time, continue to increase. BTC has been leaving the platform at the rate of around 10,000 or more a week per week since the bull market began.
A sharp selloff over the weekend liquidated almost $10 billion in longs | Source: BTCUSD on TradingView.com
The Bitcoin Bull Run is not over yet
Since the start of the current bull run, Bitcoin has shown a similar pattern: “One step forward, two steps back”. The king’s cryptocurrency has consistently seen a sharp correction after each new ATH. After correcting, it spent 3-4 weeks in consolidation.
Last week, Bitcoin price hit a new all-time high of $ 64,683. Over the weekend, the liquidation of positions with high leverage caused the price to fall. Traders may have been overwhelmed by expectations of higher prices related to the launch of Coinbase Global’s listing on the Nasdaq.
Related reading | The bearish bitcoin chart bulls definitely don’t want to see it
The open rate on Bitcoin futures hit another high, indicating strong demand for the best cryptocurrency. Many analysts are forced to declare the start of a bear market on various occasions as the coin continues to decline. However, Bitcoin has quickly regained its price and has climbed to new highs every time.
The weekend sell-off was defined as a bullish event as weak hands exit the market. However, until Bitcoin price hits its current all-time high, investors may be suspicious of buying the dip more than it used to.
Smart money buys the dip, hence the BTC leaves the exchanges. But what about you?
Featured image from Deposit Photos, Charts from TradingView.com