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After breaking through the new high, long positions began to unwind, and Bitcoin experienced a sharp decline, with a short-term fluctuation exceeding 2%. Perhaps we had prepared ourselves psychologically for the pullback after the historic high, but the $10,000 pullback indeed caught us off guard. The Bitcoin volatility index briefly reached 78.81, close to its highest value in a year. According to Tradingview data, at the time of writing, the price of Bitcoin was $63,802.
In this round of the market, Bitcoin has been notably ahead of the rest of the cryptocurrency industry in terms of price and ecosystem development due to the approval of ETFs. The continuous rise and the phrase "all-time high within the month" have generated FOMO sentiment in the market. Last night, the CEX funding rate once again reached around 1%, and a deep correction after welcoming a historic high may be inevitable.
Alongside Bitcoin's deep correction, previously outstanding Meme tokens also experienced a general downturn, with BONK, FLOKI, and PEPE all falling by more than 20% in 24 hours. Mainstream cryptocurrencies also experienced significant retracements, with Ethereum briefly dropping below $3,300 and SOL retreating to $105.
Beware of bull market pullbacks
This major correction inevitably brings to mind the events of May 19th. On May 19, 2021, the Bitcoin market experienced its most significant liquidity event and price drop since Black Thursday in March 2020. This sell-off occurred after months of consolidation above $50,000 and began following the failure of the market to sustain new highs and the much-anticipated Coinbase listing.
The most severe sell-off on May 19th created the largest daily bearish candlestick in Bitcoin's history, with an intraday price range of $11,506. Bitcoin's price had fallen by a total of 47.3% since May 9th.
The price decline on May 19th surprised a large part of the market, especially as it occurred during the longest bull market in Bitcoin's history. At that time, all major exchanges experienced outages.
As for the market's next move, we can look at the catalyst of this bull market - ETFs. Despite the significant drop in the price of Bitcoin, the daily trading volume of Bitcoin ETFs has hit a record high of $10 billion.
Markus, an analyst at Matrixport and researcher at 10X Research, has also predicted that Bitcoin will reach $125,000. Bitcoin has just broken through $69,000, still nearly halfway from the end of the bull market. Therefore, there is no need to overly worry about a significant pullback in the bull market, especially at the milestone of Bitcoin's all-time high, as pullbacks are a natural phenomenon. |
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Post time 14-3-2024 20:43:25
