Bitcoin plunges after breaking new highs, more than 300,000 people are liquidated, and $1.2 billion evaporates

Original author: Mary Liu, BitpushNews

Bitcoin tumbled sharply on Tuesday after hitting a new all-time high for the first time in more than two years.

Bitui terminal data shows that BTC broke through $69,210 on Tuesday morning, and then fell back quickly. It once fell below $60,000 during the session, and rebounded to above $61,000 as of press time.

Ethereum once rose 6.5% to $3,828.81, then erased all gains and fell to $3,412.64. Other mainstream altcoins such as ADA, DOGE and SHIB fell by about 10% -12%.

The sharp rise and fall in the market caused the entire network to liquidate nearly US$1.2 billion in positions.

According to data from CoinGlass, 318,392 traders were liquidated in the past 24 hours, totaling $1.19 billion. Among them, long positions were liquidated at US$878 million and short positions were liquidated at US$310 million. The largest single liquidation order occurred on the Bitmex platform and was a LINK/USD trading pair worth $11.35 million.

Will you continue to adjust?

Will Clemente, co-founder of Reflexivity Research, said on the X platform that Tuesday’s liquidation reminded him of Bitcoin’s trend around Thanksgiving in 2020. At the time, bulls were eyeing an imminent breakout of the $20,000 level, but Bitcoin plummeted after hitting $19,500 and dropped to around $16,000 in a short period of time.

Any dip is about washing away the shackles of high leverage and buying now, he said in the X post.

Some analysts warn that conditions could soon cool off as unrealized margins approach extreme levels.

Ed Tolson, CEO and founder of cryptocurrency hedge fund Kbit, wrote: The market is expected to see a significant adjustment, which may range from 10% to 20%. Any substantial decline will lead to a decline in the crypto perpetual swap market. Cascading liquidations occurred, retail investors poured into leveraged long positions, and the funding interest rate was very high.

He added: “Over the next few quarters, we expect Bitcoin to perform well, but with significant corrections along the way.”

Oppenheimer analyst Owen Lau also said: The rise is so rapid that we are cautious about a correction, but in the long term, there are still catalysts to support positive price action. He added: “As Bitcoin becomes more valuable, it becomes more useful. At higher market caps and daily circulation, it can support larger allocations. Bitcoin’s volatility increases with The continued decline over time allows for the allocation of larger position sizes.

Clara Medalie, director of research at crypto data provider Kaiko, echoed this sentiment, calling the new record an important psychological milestone and a testament to cryptocurrencies extraordinary ability to rebound and continue to persevere in the face of significant resistance. .

Bull market cycle accelerates

Speculation about Bitcoins future price direction is rampant, with some analysts wondering whether the recent pre-halving peak has accelerated the usual market cycle.

Historical data shows that it traditionally takes approximately 500 days for Bitcoin to reach a new all-time high after a halving. This departure from the norm suggests that we may be entering a new era of Bitcoin price action.

The cryptocurrency community remains divided over the impact of the recent price correction and its impact on future market trends. Some analysts believe Bitcoin may experience sideways moves before continuing its upward trajectory.

At the same time, there is some speculation that the potential impact of Bitcoin ETF spot inflows and other market factors is a key factor in determining Bitcoins path forward.

Since the launch of spot Bitcoin ETFs in January, institutions have begun to flock to the industry. These ETFs have achieved record performance in the past six weeks of trading. As of Tuesday’s close, spot Bitcoin ETF trading volume has once again hit a new record. historical record, reaching $10 billion.

Alex Thorn, director of research at Galaxy Digital, said: “Bitcoin has once again hit all-time highs, showing that it will never go away. In its 15 years of existence, Bitcoin has experienced four 75%+ retracements, but rebounded sharply each time .”