Bitcoin (BTC) extended its price drop on Wednesday amid warnings that excessive long positions need to be eliminated to allow for further gains.
The price of BTC barely clings to the $ 56,000 support
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.
“We will see how the price reacts to this level. Usually, the price jumps from such strong supports ”.
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.
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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