Bitcoin Dips by 2% But Traders Say Its a Healthy Pullback Before Next Leg Up - Tools for Investors | News
Stock Markets
Daily Stock Markets News

Bitcoin Dips by 2% But Traders Say Its a Healthy Pullback Before Next Leg Up


Bitcoin Dips by 2% But Traders Say Its a Healthy Pullback Before Next Leg Up

Bitcoin Dips by 2% But Traders Say Its a Healthy Pullback Before Next Leg Up

Bitcoin (BTC) price dropped by 2.12% in the past day, following news of the spot Ethereum ETF approvals. This surprised traders who were optimistic about new all-time highs following the cryptocurrency’s strong rally earlier in the week, gaining 9% to $72,000. The sudden decline saw BTC fall from a high of $71,980 on May 21 to an intra-day low of $66,606 on May 24.

Trader and analyst Mags suggested that the current correction in BTC could be a “fake out,” which has been a recurring pattern for the cryptocurrency. Mags explained that Bitcoin tends to consolidate within a range for a few weeks or months, then breaks below that range, trapping bearish traders, before quickly rebounding and continuing its upward movement.

Matthew Hyland, another analyst, pointed out that BTC’s price is approaching a retest of the demand zone between $64,000 and $67,000, which represents the neckline of an inverse head-and-shoulders pattern. Hyland emphasized that Bitcoin had successfully broken out above this pattern and closed a daily candle above it, indicating a bullish structure and potential resistance testing before reaching all-time highs.

Unfortunately, those who were betting on BTC’s recovery from current levels faced significant losses on May 23. During a 24-hour period, a total of $227.51 million in leveraged positions were liquidated, with $159.3 million of that belonging to long positions, according to data from Coinglass. In the last hour alone, $46.75 million in BTC leveraged positions were liquidated, with $39.6 million of that being longs.



Source link

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.