In the early hours of today’s trading day, Bitcoin (BTC) price fell sharply by 17.65%, leading to a major market-wide recession.
Data from Cointelegraph and TradingView Markets shows this Bitcoin fell from a high of $ 58,274 on Feb 21 to a low of $ 47,622 during the early hours of Monday morning before buyers raised BTC to its current value of $ 53,350.
Daily performance of the cryptocurrency market. Source: 360 coin
Despite today’s $ 1.6 billion liquidation event, Bitcoin bulls remain optimistic about the future of the major cryptocurrency with major indications that those who bought the dip today are likely to go out ahead.
According to ExoAlpha’s chief investment officer, David Lifchitz, Recent Bitcoin Charts Look Overbought, pointing to A “15% correction” may occur as part of the normal market cycle before BTC attempts to reach new highs.
Bitcoin’s price increased from $ 10,000 in October 2020 to nearly $ 60,000 in just 4 months. Which indicates what Lifchitz said there is definitely a “slight pause / correction within the possibilities”.
“$ 50,000 appears to be the first stop for a slight correction, but a second drop may push it to $ 40,000, while the $ 30,000 area looks like the final bottom if things get worse anytime soon.”
4 hour chart BTC / USDT. Source: TradingView
The recent cash printing by central banks is making BTC less likely to drop to $ 30,000, according to Lifchitz, because investors around the world view Bitcoin as a hedge against the devaluation of the fiat currency.
Lifchitz also noted that recent moves in traditional assets, such as the 10-year US Treasury yield, could “lead to a decline in Bitcoin as a general step to reduce leverage between asset classes,” but that “only time will tell” how everything will evolve.
Higher yields put stocks under pressure
The traditional markets were mixed on Feb.22, as Recent increases in Treasury yields have raised inflation expectations and placed more pressure on stocks.
The Dow managed to overcome initial pressure to close the day 0.09% higher. The S&P 500 and Nasdaq were in the red throughout the day and closed down 0.77% and 2.46%, respectively.
Commodities proved to be the star in the markets on Monday, With the price of Crude Oil up by 4.14% to trade at $ 61.69. The price of gold rose 1.68% and closed the day at $ 1,807.
The staking announcement and protocol updates have sent some tokens to even greater levels
Despite the market-wide downturn for the cryptocurrency community, many tokens saw their prices rise on Monday, as positive developments helped lift them above negative sentiment.
Another 24-hour star was Crypto.com Coin (CRO), whose price rose more than 63% to hit a new all-time high of $ 0.2748 in the early hours of the day.
Other notable shows are NEM (XEM) rose 16.05%, and Solana (SOL) was up 20.54%.
BTC / USD daily chart. Source: 360 coin
The total cryptocurrency market cap is currently $ 1.63 trillion and Bitcoin’s dominance rate is 61.2%.
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