In the early hours of the morning, Bitcoin (BTC) price fell abruptly by 17.65%, triggering a sharp downturn across the market.
Data from Cointelegraph Markets and TradingView shows that Bitcoin fell from a high of $ 58,274 on Feb.21 to a low of $ 47,622 in the early hours of Monday morning, before buyers returned to push BTC to its current value of $ 53,350 .
Daily market performance in cryptocurrencies. Source: Coin360
Despite today’s $ 1.6 billion liquidation event, Bitcoin bulls remain optimistic about the future of the top cryptocurrency. Key indicators suggest that those who buy today’s dip are likely to be ahead.
According to David Lifchitz, ExoAlpha’s chief investment officer, the most recent charts for Bitcoin were overbought, indicating that under a normal market cycle, a “15% correction” could occur before BTC attempts to hit new highs.
Bitcoin rose from $ 10,000 in October 2020 to nearly $ 60,000 in just 4 months, indicating to Lifchitz that a “pause / mild correction is definitely in sight”.
$ 50,000 seems like the first stop for a slight retreat, but a backlog on the second leg could drop to $ 40,000 while the $ 30,000 zone looks like the ultimate low should it get ugly in the short term. “BTC / USDT 4-hour chart. Source: TradingView
Recent central bank money pressures make it less likely that BTC will drop to $ 30,000, according to Lifchitz, as Bitcoin is increasingly viewed as a hedge against currency depreciation by investors around the world.
Lifchitz also pointed out that recent moves in traditional assets like the US 10-year Treasury Yield “could trigger a retreat of Bitcoin as a general debt deleveraging move across asset classes,” but only “time will tell” how it all turns out developed.
Rising yields put stocks under pressure
Traditional markets were mixed on February 22nd as recent hikes in government bond yields spiked inflation and put additional pressure on stocks.
The Dow was able to overcome early pressure to close the day 0.09% while the S&P 500 and NASDAQ were in the red all day, closing 0.77% and 2.46% respectively.
Commodities turned out to be a bright spot on the markets on Monday. The price of crude oil rose 4.14% to trade at $ 61.69. Gold rose 1.68% to close the day at $ 1,807.
Staking out advertisements and protocol upgrades will send selected tokens higher
Despite the market-wide downturn for the crypto community, the prices of some tokens rose on Monday as positive developments helped lift them above the negative sentiment.
The breakout star of the past 24 hours was Crypto.com Coin (CRO), the price of which skyrocketed more than 63%, hitting a new all-time high of $ 0.2748 in early trading hours.
Other notable achievements are NEM (XEM) with an increase of 16.05% and Solana (SOL) with an increase of 20.54%.
BTC / USD daily chart. Source: Coin360
The total market cap for cryptocurrencies is now at $ 1.63 trillion, and the dominance rate of Bitcoin is 61.2%.