Bitcoin (BTC) traded at just under $ 65,000 on November 11 after an overnight correction that canceled an earlier sudden rally.
1-hour candlestick chart BTC / USD (bit stamp). Source: TradingView
There is no free lunch for speculators
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD is recovering after falling below $ 63,000 shortly after due to renewed volatility.
The pair rose sharply in the middle of US inflation, which reached a 30-year high, and this, combined with the reaction from the derivatives market, results in price uncertainty.
With $ 69,000 reaching a record high, some were intimidated while veteran members took the opportunity to laugh at their weak hands.
“Why did bitcoin fall from 68K? This afternoon, there was a sharp increase in interest in the open margin on BTC (traders trade long BTC positions with BTC as collateral),” analyst Dylan Leclerc explained with the Glassnode chart.
“There’s no free lunch – these merchants are already on their way to success.”
Annotated Bitcoin futures chart. Source: Dylan Leclair / Twitter
Co-analyst William Clemente cited Taproot’s upcoming soft fork as the obvious cause of the rally, ignoring short-term price action.
Taproot will bring many protocol improvements to Bitcoin, nothing compared to any changes since the introduction of Segregated Witness (SegWit) transaction technology.
Meanwhile, derivative financing rates have already fallen, returning safely to neutral territory of 0.01% on stock exchanges.
Ether avoids deeper setbacks in altcoins
In classic mode, altcoins felt the heat of Bitcoin’s reversal, erasing what was previously superior to BTC / USD returns.
Related topics: #DropGold Works – The World’s Biggest Grayscale Flippens Gold Fund with $ 60 Billion Under Management
Ethereum (ETH) was the safest today, falling 0.6%, but still around the corner from all-time highs.
1-hour candlestick chart ETH / USD (bit stamp). Source: TradingView
Others do a little worse, with daily losses of 4% which is not uncommon among the top 10 cryptocurrencies by market value.
“Currently critical: Bitcoin,” concluded Cointelegraph contributor Michael van de Poppe in his latest YouTube update.
“Where are we going? If we break this $ 67,000 range, I think we will continue the bullish cycle and be ready for new records.”