After a record weekend liquidation, the Bitcoin price bounced back above $ 57,000 – and recovered about $ 3,000. Monday at 2:21 PM GMT, the price of the coin traded at $ 56,367, gaining 2.32% in the past 24 hours.
In late Sunday, about $ 9.79 billion walked out of long positions that “stretched”, making the weekend one of the biggest liquidation events in all of crypto history.
Historical liquidations drive prices down on hash rate FUD
The selloff has been attributed to several FUD, including the Coinbase founders who sold their shares to the recent slump in Bitcoin’s hash rate. However, the market appears to be gradually recovering and on-chain analysis shows that the bull run is far from over.
Crypto Analyst, Jeff Dorman, noted yesterday on Twitter:
– incorrect analysis of $BTC hash rate decline
– incorrect analysis of how much $COIN insiders sold
– most likely false (or at best unsubstantiated) rumors of US Treasury charging financial companies over crypto money laundering
Result: Huge selloff/liquidations
— Jeff Dorman, CFA (@jdorman81) April 18, 2021
Bitcoin price vs all exchanges Bitcoin reserve since we start ranging from 58k for almost 2 months now. Price was pretty much flat but reserve down -12%
Yesterday there was a major outflow from Binance again during the sell off pic.twitter.com/J9hzbQoMP6
— Dovey “Rug The Fiat” Wan🪐🦖 (@DoveyWan) April 19, 2021
Even with such a big sell-off, it looks like the outflow of exchanges continues. Binance Exchange recorded one of the highest outflows of Bitcoin on the day of the sale.
The outflow of Coinbase Pro, which has been dubbed the most bullish signal ever, continues to increase. BTC is leaving the platform at a rate of about 10,000 or more per week per week since the start of the bull market.
A sharp selloff over the weekend liquidated almost $10 billion in longs | Source: BTCUSD on TradingView.com
The Bitcoin Bull Run is not over yet
Since the current bull run began, Bitcoin has shown a similar pattern of “one step forward, two steps back”. The cryptocurrency king has consistently undergone a sharp correction after every new ATH. After correction, it has spent 3-4 weeks in consolidation.
Last week, Bitcoin price hit a new all-time high of $ 64,683. By the weekend, the liquidation of high leveraged positions caused the price to plummet. Traders may have had excessive leverage due to the expectation of rising prices around the launch of the Coinbase Global listing on Nasdaq.
Related reading | The Bearish Bitcoin Chart Bulls absolutely don’t want to see
The Bitcoin Futures Open Interest rate hit another high, indicating strong demand for the best cryptocurrency. Many analysts have been forced to declare the beginning of a bear market on several occasions as the currency continues to fall. However, Bitcoin has quickly regained its price and has risen to a new high every time.
The weekend sell-off has been defined as a bullish event as weak hands exit the market. However, until the Bitcoin price recovers its current all-time high, investors may be wary of buying the dip more than they once were.
Smart money buys the dip, which is why the BTC is leaving the exchanges. But what about you?
Featured image from Deposit Photos, Charts from TradingView.com