Bitcoin Records High Price Correction Support - Is Price Over $50k Possible Now?

Bitcoin Records High Price Correction Support - Is Price Over $50k Possible Now?

2021-02-16 | Big Bob

Bitcoin Records High Price Correction Support - Is Price Over $50k Possible Now?

The leading cryptocurrency Bitcoin [BTC] seems to have completely pared losses from Sunday’s dip as the leading crypto asset fell from around $48.6k USD to below $46k USD earlier on Monday morning. As of 21:00 UTC [4 p.m. ET], Bitcoin [BTC, +4.66%] was trading over $48,600 on Coinbase exchange. But the leading cryptocurrency still has yet to trade over the psychologically significant $50k benchmark. Bitcoin Records High Price Correction Support - Is Price Over $50k Possible Now? Much of bitcoin’s choppy price action and its recent dip might be attributed to futures deleveraging. Eager bulls piled into long trades expecting a swift breakout to $50k or even higher. Funding rates for perpetual bitcoin futures have steadily hiked within February, consistent with market data revealed by Skew, with some funding rates reaching their highest levels within the past 12 months. Confirming these market conditions, bitcoin futures saw over $520 Mln in liquidated contracts over the past 24 hours, consistent with data from Bybit. The eager buyback after these liquidations hints at the market’s resilient bull run after resetting over-eager bull run futures traders. Bitcoin Records High Price Correction Support - Is Price Over $50k Possible Now? High positive funding rates signal a rise in long positions, whereas negative rates indicate more bearish sentiment. The market tends to reset when traders, especially in overcrowded derivatives positions, become overly bearish or bull. Even though some traders could also be dissatisfied by the choppy price action, other market participants are enjoying themselves. Bitcoin miners, for instance, recorded as high as $354 Mln in revenue last week, surpassing the earlier record of $340 Mln set in mid-December 2017. Network fees contributed over 15% of this revenue. The second-largest cryptocurrency by market cap, Ethereum [ETH, +3.96%], was up Monday trading around $1,820 USD and climbing over 1% within 24 hours as of 21:00 UTC [4:00 p.m. ET]. Shortly after setting new record highs above $1,850 USD, Ethereum also suffered a large drop, falling almost 10% to roughly $1,660 USD earlier on Monday. Over $313 Mln in ether futures were liquidated within the past 24 hours, according to Bybit. The DeFi sector in aggregate followed suit, as per data revealed by Messari. But Ethereum along with various assets within the DeFi ecosystem have since recovered, with DeFi’s aggregate performance up nearly 3% within the past 24 hours, in line with an official report by Messari. On the other hand, some alternative cryptocurrencies have also recovered from the market’s dip. FTX’s altcoin index perpetual futures are up nearly 20% from early Monday morning lows, completely correcting the price correction.

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