Bitcoin continued its decline this Wednesday, in the process dropping to a week and a half low of about $ 55,600. The first cryptocurrency reached a local high on the night of April 6, slightly below $ 60,000, but again faced a rejection at key resistance.
Market activity suggests that traders have once again taken in large volumes of high-margin long positions in anticipation of a breakout and new highs. The volume of liquidations in the last 24 hours exceeded $ 2 billion. More than 368,000 traders have undergone liquidations, according to data from the Bybt service. The largest volume of liquidations occurred during the last hour, when positions for $ 677 million were closed. More than 95% of liquidated positions were long. Filbfilb analyst believes that the massive liquidation of high-margin long positions is an important condition for the further rise in the price of bitcoin.
The Whalemap service claims to have a potential formation of reliable support around current levels.
“There was a large influx of whale wallets on March 23, around $ 55,172. Let’s see how the price reacts to this level. Usually the price bounces off such strong supports, ”analysts write.
Analyst Ewadard Morra supports this opinion, guided by technical analysis:
“Reached the green zone. Patience. I think he’ll at least bounce out of here. The worst is probably over. ”
Today’s market pullback has also thwarted the plans of altcoin holders. Ethereum is trading below $ 2,000 again. The leaders of the previous segment show the largest decline: Binance Coin, XRP and Polkadot lose more than 10% of their value.
Trader Scott Melker blames overly impressionable traders for what is happening:
“Bitcoin sneezed and fell several hundred dollars. Nervous traders sell their alts like idiots in panic, bitcoin dominance grows. Good times”.
The PlanB analyst believes that nothing threatens the longer-term trend of bitcoin so far.
“Bitcoin has been trading for about $ 55,000 since February 19. I think we need some consolidation around this magic number. Weak hands give their coins to strong hands. The long-term trend (200-week moving average) does not care, it grows every day, ”he writes.