TL; DR separation:
- The price of Bitcoin dropped to about $ 2,000 earlier today in a matter of minutes.
- The crash led to the liquidation of more than $ 89 million in BTC position.
As weekly charts enlarge, the largest digital currency, Bitcoin (BTC), appears to be on a downward trend. The price of bitcoin has been steadily declining since it peaked at $ 67,000 last week (ATH). Bitcoin has lost about 11 percent since ATH, which somewhat indicates that many people are making a profit.
This is also true for long-term holders (LTH) using chain data. According to Golsnood, several LTHs have begun to cut profits from the recent rally.
Bitcoin reaches $ 2,000 in minutes
Earlier today, Bitcoin fell nearly $ 2,000 from $ 60,000 to $ 58017 in a matter of minutes. There is no definite reason behind the sudden decline of bitcoin. However, it is worth noting that liquidity in the derivatives market can also be a factor.
According to Bybt, the sell-off in the Bitcoin market was strong enough to dissolve $ 9.55 million in BTC buying positions in one hour and $ 89.4 million in the last four hours. According to the 24-hour count, the market sees a much higher loss of $ 182.3 million at the time of writing.
Just before this increase in the derivatives market, financing rates in the permanent swap futures markets followed high BTC levels. This shows that many futures traders were excited and greedy in the midst of the rally and the news of ETF developments in the United States. When financing rates are high, it means that traders are in a state of euphoria, which usually leads to drastic corrections.
What is the future of Bitcoin?
Bitcoin may have lost about $ 10,000 since ATH October. However, this can probably be a mere correction. Many experts and analysts believe that the bullish market is still intact. On Tuesday, popular Bitcoin analysts and creator of the S2F model, PlanB, said the second bullish market has just begun. He predicts that Bitcoin will reach $ 100,000 in December.