Bitcoin Reaches New High, But Slips Below $30K
Bitcoin surged to a new 13-month high at $31,500, but quickly faced a strong rejection, causing the asset to drop below $30,000 multiple times. The altcoins also experienced losses, with notable declines in Litecoin, Bitcoin Cash, Lido DAO, and others.
Enhanced Volatility and Temporary Calm
- Last Friday, bitcoin saw significant volatility, dropping from over $31,000 to a 10-day low of $29,500. Following this, the cryptocurrency experienced a period of relative calm, hovering around $30,500 without major movements.
Price Pump and Subsequent Bearish Pressure
- In the middle of the week, bitcoin once again pumped above $31,000 but faced resistance. After retracing back to $30,000, it surged to a new 13-month high at $31,500.
- However, bears quickly emerged, causing bitcoin to lose $1,500 within an hour and drop to $29,700. This volatility has raised concerns that the recent rally may be coming to an end.
Impact on Traders and Market Cap
- The sharp price movements have negatively affected over-leveraged traders, resulting in total liquidations exceeding $140 million at one point.
- Currently, bitcoin is trading just above $30,000, but its market cap has decreased by $20 billion to under $585 billion.
Hot Take
The recent volatility in the cryptocurrency market, particularly with bitcoin, highlights the challenges and risks associated with trading digital assets. While surges to new highs may be exciting for some, it’s important to exercise caution and manage risk appropriately to avoid significant losses.
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