While Bitcoin, the leading cryptocurrency, crowned its rise in recent weeks by reaching its previous ATH of $69,000, it could not exceed this level.
Later, BTC continued its decline yesterday evening and reached the $ 59,000 level.
While Bitcoin continued its fluctuating movements in the range of $60,000-$69,000, its investors were excited.
Now, while investors are wondering whether the decline in BTC will continue, an assessment has come from QCP Capital analysts.
At this point, analysts stated that BTC reached its all-time high of $ 69,300 on some exchanges yesterday evening, but from this level, BTC fell sharply to $ 59,200 in just 5 hours, and said that $ 60,000 proved to be a good support level for BTC in this process. .
Analysts stated in their report that the selling pressure effective in this decline came from purchases made mostly in September-December 2023 for both BTC and Ethereum (ETH) and that they did not expect this correction situation to last too long.
“Last night Bitcoin reached an all-time high of $69,300 but fell sharply to $59,200 within 5 hours.
While leveraged long positions experienced a huge liquidation wave with this decline, over $1 billion leveraged positions were liquidated in Binance alone.
Investors turned the decline in Bitcoin into an opportunity and bought this decline very quickly and aggressively, and $60,000 proved to be a very good support level for BTC.
Some investors think these dips are a good opportunity to buy.
Funding in Bitcoin 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 are surprisingly still trading at a good premium to spot, making cash and current trading much more attractive.
There has been a rush among some spot investors to sell at these peak levels in order to secure risk-free returns for the remainder of 2024. However, we do not expect this situation to last very long.”
Bitcoin continues to trade at $65,800 at the time of writing.
*This is not investment advice.