Bitcoin price falls 5% and second day of losses brings Ethereum below $ 2,000


Bitcoin (BTC) extended its price drop on Wednesday amid warnings that excessive long positions need to be eliminated to allow for further gains.

1 hour BTC / USD candle chart (Bitstamp). Source: Tradingview

The price of BTC barely clings to the $ 56,000 support

Cointelegraph Markets Pro and TradingView showed BTC / USD hitting new local lows at $ 55,760 during trading on Wednesday.

One second day of more substantial losses for the pair came when altcoins also started to reverse their previous successes, with Ether (ETH) falling below $ 2,000.

An analysis of the trader’s behavior pointed to leveraged long positions in the spot price before, indicating the belief that the rise is more likely than another fix. These positions, believes analyst Filbfilb, need to be liquidated before Bitcoin can make a meaningful attempt at new historical maxims.

The last price action was somehow to renew the composition of the market – $ 2 billion in settlements in the last 24 hours, $ 600 million of which in a single hour, according to data from the monitoring facility Bybt.

“A big influx for a whale portfolio happened at $ 55,172 on March 23rd” , added the monitoring service Whalemap, with an eye on a possible floor.

“We will see how the price reacts to this level. Usually, the price jumps from such strong supports ”.

BTC / USD chart showing groups of whale orders. Source: Whalemap

Altcoins reverse strong weekly start

In altcoins, strong performance was in jeopardy at the time of writing, with Ether back below its historic $ 2,000 mark and moving away from the all-time high.

ETH / USD 1 hour candle chart (Bitstamp). Source: Tradingview

The XRP and Polkadot’s DOT were the biggest losers among the top 10 cryptocurrencies by market cap, losing more than 10% on the day. All but one of the top 50 tokens – excluding stablecoins – were in the red.

As popular trader Scott Melker pointing out as a cause overly sensitive traders.

“Bitcoin sneezes and drops a few hundred dollars, nervous traders panic and sell their alts like fools and Bitcoin’s dominance increases. Good times, ”he tweeted.

“Remember how delicate these alternative currency trading windows are.”

Alts continue to be rated for an exceptional return to form, with Filbfilb even arguing that the second incarnation of “Alt Season” is already here.

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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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