Although Bitcoin, the leading cryptocurrency, has capped its rise in recent weeks by reaching its previous high of $69,000, it has failed to surpass this level.
Subsequently, last night, BTC continued its decline and reached the $59,000 level.
As Bitcoin continued its fluctuating movements in the $60,000 to $69,000 range, its investors were thrilled.
Now, as investors wonder whether BTC’s decline will continue, an assessment has arrived from analysts at QCP Capital.
At this point, analysts said that BTC reached its all-time high of $69,300 on some exchanges last night, but from this level BTC fell sharply to $59,200 in just 5 hours, and they said that $60,000 proved a good support level for BTC in this process. .
The analysts stated in their report that the effective selling pressure in this decline came from purchases made mainly in the September-December 2023 period for both BTC and Ethereum (ETH) and that they did not expect this correction situation to last too long .
“Bitcoin hit an all-time high of $69,300 last night, but fell sharply to $59,200 in 5 hours.
While long leveraged positions have seen a huge wave of liquidations with this drop, over $1 billion in leveraged positions have been liquidated on Binance alone.
Investors turned Bitcoin’s decline into an opportunity and bought this decline very quickly and aggressively, and $60,000 turned out to be a great support level for BTC.
Some investors believe these dips are a good buying opportunity.
Bitcoin funding has returned to reasonable levels (30% annually on Binance) and the likely scenario is that the ETH/BTC trading pair will outperform once the ETH spot ETF narrative comes into play.
Despite the massive liquidation of leveraged positions, futures surprisingly still trade at a good premium to the spot price, making cash and current trading much more attractive.
There has been a rush among some spot investors to sell at these peak levels to secure risk-free returns for the remainder of 2024. However, we do not expect this situation to last long.”
Bitcoin continues to trade at $65,800 at the time of writing.
*This is not investment advice.
