🚀🚀🚀 #Bitcoin Shoots Above $73K, Tumbles to $69K, Rebounds to $71K, Triggering $360M in Crypto Liquidations
The #cryptocurrency market experienced a sudden surge in volatility on Tuesday, with Bitcoin (BTC) reaching a record high above $73,000 before swiftly declining by nearly 6%. Despite this dip, Bitcoin managed a modest rebound.
As of the latest update, Bitcoin was trading at $71,150, marking a 2% decrease over the past 24 hours, which still outperformed the 3% drop seen in the CoinDesk 20 Index (CD20).
Ether ($ETH ) also saw a 2% decline, while Ripple ($XRP ), Dogecoin, and Litecoin ($LTC ) experienced more significant tumbles, ranging from 6% to 8%.
Among the CoinDesk 20 constituents, Avalanche's native token (AVAX) stood out as the sole notable gainer, surging by 15% for the day.
The heightened volatility led to the liquidation of over $360 million worth of leveraged derivatives positions across all cryptocurrencies, predominantly impacting long positions speculating on price increases, according to CoinGlass data. This marked the largest liquidation event for long positions since the correction on March 5.
In a market update on Tuesday, crypto investment services firm Matrixport highlighted signs of waning momentum in Bitcoin's rally.
The report pointed out a divergence between Bitcoin's high prices and a declining Relative Strength Index (RSI), a popular momentum indicator based on the velocity and magnitude of price changes.
Matrixport analysts suggest a consolidation phase for Bitcoin despite bullish sentiment, noting a discrepancy between decreasing RSI and high prices. The $69,000 level could serve as short-term support. U.S. inflation data for February exceeded expectations, potentially affecting Fed rate decisions. Aurelie Barthere of Nansen.ai downplays the impact on cryptocurrencies, expecting #bullish momentum to outweigh short-term factors and Fed rate cut expectations to remain intact.
Source - coindesk.com
