Why Bitcoin Price Rally Flipped?
The Bitcoin price rally accelerated to hit the highest ever levels in history above $58K in the past week. However, the bears were on the notch to slash the price down to the current levels, probably providing an opportunity for the altcoins to flourish.
The dip intensified in the past couple of hours dropping to levels close to $53K and many altcoins also followed the suit. But what changed suddenly that led to such a drastic dip?
As per an analyst, investor and entrepreneur Alistair Milne, the possible reasons may be the high rates, the shift of focus of the institutions, profit extraction, etc.
The analyst also cautioned the price may go as low as $48,000 if the dip does not stop at the levels around $50K.
More Than 400 Million Liquidated That LED to the Current Dip!
The BTC price which is experiencing extreme volatility that led to a heavy price plunge has been liquidated enormously. The asset which rose with lightning speed is dipping at the same pace and one of the major reasons is liquidation.
According to analyst Larry Cermak, $410 million worth of Bitcoin was liquidated in the current trading day. Surprisingly, nearly $240 million was recorded from the most popular cryptocurrency exchange Binance.
The liquidation was very much expected as the retail’s leverage had increased by almost 50% in the last two weeks. Since Tesla’s balance sheet showcased the investment in Bitcoin, the retail leverage had spiked significantly.
Collectively, the bitcoin price rally includes huge spikes and also multiple dips too. Hence, the BTC price is expected to retrace deep enough to convince that the bull market is over. Yet resume its uptrend later as predicted by a popular analyst Rekt Capital.
