After trading above $19,000 for some period, Bitcoin expressed a correction as the price value went below $18,500. The market experts believe a minor correction is necessary for the top digital asset to break the all-time high value.
Liquidation of BTC Longs
As the price downfall happened, the data shows nearly $556 million were liquidated on the three prominent cryptocurrency exchanges. On the largest crypto exchange by volume, Binance, BTC longs worth $262 million liquidated in just one hour. When threshold points of futures reach, the trading platforms close the positions, which results in a correction. A total of $425 million was liquidated over Binance this morning. On the other hand, derivative crypto exchange BitMEX witnessed a loss of $117 million while Bitfinex lost $14.7 million in the same timeframe.
The drop in the value happens after the presence of extreme bullish sentiments in the cryptocurrency markets. The technical indicators are also anticipating a bearish pattern for the immediate short term. Based on the data provided by the “Fear and Greed” index, the market seems greedy as the rating or value of the metric has reached above 90.
Famous technical indicator Relative Strength Index (RSI) draws a bearish picture and suggests a correction in the price value due to “overbought” status in the cryptocurrency markets.
Over Twitter, there are mixed sentiments as some are predicting further bullish positions while others are speculating temporary bearish positions. In 2017, the price crashed three times before claiming $20,000, the all-time highest value.
Nearly $80 billion washed away from the total market capitalization of the crypto markets after Bitcoin and other cryptocurrencies made a movement in the downward direction as the figure dropped from $580 billion to $500 billion.
It is true that the world’s leading digital asset has lost a significant amount of value but altcoins have suffered even worse than Bitcoin. Due to the great suffering in altcoins’ values, Bitcoin’s dominance has increased to 62.5% besides price downfall. The dominance has recovered in today’s trading session as the figure of BTC dominance slumped to 60% a few days back.
Rising Numbers of Bulls
There is great news also happened for Bitcoin as the number of bulls in the crypto space has marked a new all-time high. “The number of Bitcoin whales (entities holding at least 1,000 BTC) has reached a new ATH after more than 4 years. An entity is a cluster of network addresses controlled by the same individual/institution,” stated analysts at Glassnode.