Bitcoin is still resisting to stay above the $ 55,000 level, as the price of Bitcoin rebounded to it after touching it and dropping to $ 53,500.
A rapid and sudden drop from above $ 60,000 to current levels caused nearly $ 9.79 billion to be liquidated last Sunday, making it one of the largest liquidations in cryptocurrency history.
The reason for the heavy selling is due to the many news and the spread of suspicion and feelings of uncertainty “FUD”, yet it seems that the market is recovering, as although Bitcoin is far from its record levels by about $ 10,000, Bitcoin currencies continue to exit from the trading platforms towards individual portfolios. .
Even during a sharp market downturn, cryptocurrency exchange Binance recorded one of the largest outflows of bitcoin.
Analyst Dover One indicated that the bitcoin price has continued to trade in the range above $ 58,000 for nearly two months now despite Bitcoin reserves falling by 12%.
The decline of Bitcoin from trading platforms is a positive sign, as it often represents Bitcoin’s shift from speculation to storage.
Bitcoin’s rally is not over yet:
Bitcoin price throughout this uptrend showed a similar pattern.
Whereas, after a new peak every month there is a sharp correction and then a 3-4 week consolidation period.
Bitcoin reached a new record high of $ 64,683 last week, followed by weekend sell-offs and the liquidation of highly leveraged positions.
The consolidation phase became longer with each new record level, which prompted many to announce the start of a bear market on countless occasions over the past two months, however, Bitcoin has bounced back to new highs every time, after which speculation appeared about its reaching higher levels. .
The open interest rate on Bitcoin futures touched another high, indicating strong demand for the cryptocurrency.
Supporters and enthusiasts of Bitcoin believe that the market liquidation event was nothing, because traders are greedy and the sell-off is a bullish event as it ensures weak hands leave the market.
Currently, the Bitcoin price is trading at $ 55,183, down more than 3% in the past 24 hours.