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The sell-off on the cryptocurrency market pushed the price of the first cryptocurrency below the all-time high of 2017, enormously pressuring the entire market. The market did not expect such a strong dive, especially below the "unbreakable" $19,000 support but, thankfully, BTC is back above the $20,000 threshold.
The unexpected bounceback was mostly fueled by the lack of selling volume on centralized exchanges, as most retail and institutional investors capitulated during the weekend trading session when the Bitcoin network experience an enormous $7 billion realized loss.
In yesterday's trading session, Bitcoin broke through the short-term resistance of $21,000 but then quickly retracted back to $20,000, closing at $20,555. Thankfully, traders pushed the price of the orange coin further, making it eligible for a greater upward move in the future.
Unfortunately, the volume profile suggests that most market participants are not yet ready to push significant funds onto the market, as the fear still prevails among them. According to the liquidation volume of institutional investors like Three Arrows Capital, Celsius and others, the potentially upcoming short-term rally will most likely be started by retail traders that will catch a knife on the market.
Alex DovbnyaAs U.Today previously mentioned, altcoins are seeing elevated inflows as traders are looking for more volatile market exposure to maximize their profits while cryptocurrencies are bouncing.
Such positions as SNX and STEPN or even Celsius are showing up to 100% of returns in less than 48 hours, which attracts more investors than Ethereum that showed a mild 10% return in the last three days of trading.
At press time, Bitcoin is trading at $21,180.
Valeria Blokhina
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov