Early in the morning, the price of Bitcoin (BTC) dropped sharply by 17.65%, triggering a major slowdown across the market.
Data from TBEN Markets and TradingView shows Bitcoin went from a high of $ 58,274 on February 21 to a low of $ 47,622 in the early hours of Monday before buyers returned to take BTC to its current value of $ 53,350.
Despite today’s $ 1.6 billion liquidation event, Bitcoin bulls remain bullish on the leading cryptocurrency’s future with key indicators suggesting those who buy today’s decline ‘hui are likely to prevail.
According to David Lifchitz, chief investment officer of ExoAlpha, recent Bitcoin charts seemed overbought, signaling that a “15% correction could occur” as part of a normal market cycle before BTC attempts to reach new heights.
Bitcoin has gone from $ 10,000 in October 2020 to almost $ 60,000 in just 4 months, telling Lifchitz that a “slight pause / correction is definitely in the cards.”
$ 50,000 seems like the first stop for a slight pullback, but a second step could bring it down to $ 40,000 while the $ 30,000 area appears to be the ultimate bottom if things turn bad in the near term. “
According to Lifchitz, recent printing of money by central banks makes it less likely that BTC will drop as low as $ 30,000, as Bitcoin is increasingly seen as a hedge against currency devaluation by investors around the world.
Lifchitz also pointed out that recent movements in traditional assets such as the 10-year US Treasury yield could “trigger a pullback in Bitcoin as a general deleveraging movement between asset classes”, but only “time will we will say ”how everything will unfold.
Rising yields put pressure on stocks
Traditional markets were mixed on February 22, as recent increases in Treasuries yields led to expectations of rising inflation and putting additional pressure on equities.
The Dow managed to overcome initial pressure to close the day 0.09% higher as the S&P 500 and NASDAQ traded in the red all day and closed 0.77% lower and 2, 46% respectively.
Commodities turned out to be the bright spot for markets on Monday, with the price of crude oil rising 4.14% to trade at $ 61.69. The price of gold rose 1.68% and end the day at $ 1,807.
Staking announcements and protocol upgrades send tokens selected above
Despite the market downturn for the crypto community, several tokens saw their prices rise on Monday as positive developments helped lift them above negative sentiment.
The star of the breakout over the past 24 hours has been Crypto.com Coin (CRO), whose price has exploded by over 63% to set a new all-time high of $ 0.2748 in the early hours of trading.
Other notable performances included NEM (XEM), up 16.05%, and Solana (SOL), up 20.54%.
The overall cryptocurrency market cap now stands at $ 1.63 trillion and Bitcoin’s dominance rate is 61.2%.