- Bitcoin experienced a sharp price drop in the early hours of the day.
- An expert analyst says this drop is just a correction.
Bitcoin price fell sharply to $29,000 today. Although there is no fundamental reason for this, it is considered to be just a correction.
Reasons for Bitcoin’s Drop!
Bitcoin price dropped from over $30,000 to $29,032 in the morning hours today. The initial 3.5% drop occurred in just 20 minutes.
Although there is no fundamental reason for the sale, currently two factors stand out for the sudden price drop. These are the large sale of 16,000 BTC worth approximately $467 million on Binance and the subsequent wave of liquidation.
According to data, 16,000 Bitcoin was sold on the Binance spot market, while “quite typical” amounts were sold on other spot exchanges. This selling pressure is being interpreted as “interesting” by the community.
Bitcoin Spot Sale Amounts
This Could Just Be a Correction
A “long squeeze” occurred in the futures market after the big sale. According to Coinglass data, more than $181 million in liquidation occurred in Bitcoin futures. This is the highest long liquidation amount since March 9th and 23rd of this year.
Total Bitcoin Liquidation
On March 9th, Bitcoin fell from over $21,700 to below $20,000 due to a long squeeze ($248.8 million), but Bitcoin price rose above $22,000 in just two days. On March 23rd, due to a long squeeze ($183.7 million), Bitcoin fell from $28,300 to just below $27,000, and the market regained all the losses in just one day.
Michaël van de Poppe, founder of Eight Global and expert analyst, says “Just a liquidation wave” and advises:
“Should you get into altcoins and positions?” Well, this drop is your chance. Bitcoin corrects, altcoins provide deep wicks that offer liquidity levels and significant opportunities. Nothing significant has changed, just a correction.”
