Bitcoin (BTC) continued its price drop on Wednesday amid warnings that too long positions must be liquidated to generate new profits.
BTC price barely holds support of $ 56,000.
Cointelegraph Markets Pro and TradingView showed that the Bitcoin / USD hit a new local low of $ 55,760 during Wednesday’s trading.
Another day of big losses for the pair came when the altcoins also began reversing earlier gains when Ether (ETH) fell below $ 2,000.
A quick look at the trading behavior indicated that there were open long positions at previous spot prices, indicating confidence in the possibility of more upside than another correction. Analyst Philbfilb believes these situations must be eliminated before Bitcoin makes a big attempt to take on new, full-time jobs.
Recent price action has been associated with a renewed market structure – $ 2 billion in accounts over the past 24 hours, of which $ 600 million is in just one hour, according to Bybt.
“On March 23, there was a large influx of $ 55,172 from the whale wallet,” added the monitoring service Whalemap, which examines potential ground.
Let’s see how the price will react at this level. Usually the price bounces off this strong support. ”
BTC / USD chart shows whale order groups. Source: Whalemap
Altcoins cancel out the strong start of the week
At the time of writing, soaring altcoin numbers were under threat as Ether returned below the historic $ 2000 level and surpassed record highs.
Polkadot’s XRP and DOT were the biggest losers in the 10 largest cryptocurrencies by market cap, losing more than 10% in a single day. They were all of the first 50 tokens except for one red coin.
While commenting, acclaimed trader Scott Melker blamed sensitive traders.
“Bitcoin is sneezing and releasing several hundred dollars, and nervous traders sell their alternatives in panic as the dominance of gabroni and Bitcoin rises. Good times,” he tweeted.
“Remind me how sensitive these windows are to currency trading.”
Altse still tends to make a dramatic return to the summer, even Philbfilb claims the second incarnation of “Alt Season” is here.