Is the BTC Bull Run at Risk of Slowing?
Cryptocurrency Speculator - Max
The price to buy Bitcoin (BTC) unexpectedly dropped by almost 6% in less than four hours as the new weekly candle opened on March 15. Three variables led to the slowing of Bitcoin's momentum, including new open monthly, strong funding costs, and stablecoin inflows, mainly pushing up the price.
When a new weekly candle opens, Bitcoin usually sees high volatility, so the pattern on Monday will determine how Bitcoin will do for the remainder of the week.
In the last few hours, as the pseudonymous investor "Rekt Capital" stated, Bitcoin has seen an over-extended drawdown. Consequently, the trader said that buying Bitcoin may be in the phase of seeing a "volatile reset."
If Bitcoin struggles to recover from the $55,000 area, the trader cautioned that a steep decline to the $46,700 support level will become likely.
According to Bybt.com reports, 194,541 traders have been liquidated for a total of nearly $1.83 billion in the last 24 hours, the largest since Feb. 21. The futures market has seen cascading liquidations since the market has become incredibly overheated. This surge of liquidations ultimately led Bitcoin to sink below $57,000, described by Cointelegraph Markets analyst Michael van de Poppe as a crucial level of funding.
Before the decline happened, on-chain data analytics tool CryptoQuant pointed to massive BTC deposits in Gemini.
Gemini is the largest Bitcoin exchange in the United States alongside Coinbase, which is also used as a whale exchange.
Ki Young Ju, Chief Executive Officer of CryptoQuant, said:
"This 18k $BTC deposit is legit as it was a transaction between user deposit wallets and Gemini hot wallet.”
In response to the price pressure from whales, another bearish indication was the latest Bitcoin surge driven by stablecoin inflows into exchanges.