Bitcoin climbed to a new all-time high above $ 49,700 on February 14, but reversed that night. In fact, the cryptocurrency has reached levels where it only traded a few days ago, and has lost a small part of the gain recorded since Tesla announced its purchase of BTC last week.However, a five percent decline from $ 48,300 to $ 45,900 in 15 minutes was enough to liquidate more than $ 1 billion in traders’ positions. The liquidation volume per hour was $ 1.27 billion. The vast majority of liquidated positions were long.The change in dynamics occurred at about 02:00 Moscow time, when trading on the Chicago Mercantile Exchange (CME) opened. A gap has formed on the chart, caused by the difference between the price at the close on February 13 and the current price.“The whales pushed the market up on thin volumes (derivatives), finally made everyone believe in a new all-time high and merged at the CME opening. The art of war, military-grade strategy, ”says an analyst at Fomocap.As a result, funding rates in the futures market dropped to 0.05%, approaching neutral values. This helps keep the market from overheating with long margin positions and provides the necessary reset that analysts have been talking about over the past week.Glassnode
invites you to take a lookfor a broader perspective: “Previous bull markets were characterized by increased outflows from the wallets of Bitcoin miners who have accumulated these coins over the previous years. While we see a slight increase in the churn of older BTCs, a similar pattern has not yet emerged in the current bull market. ”Of course, all this volume of liquidations was not caused by Bitcoin alone. The segment of altcoins is also declining today. Due to their explosive growth together with BTC on Sunday, market capitalization exceeded $ 1.5 trillion for the first time. The most unsuccessful cryptocurrency in the top 100 turned out to be Dogecoin – it fell by 17% in a day and by 30% in a week. Before that, DOGE on Twitter criticized Elon Musk, who initiated his earlier pump.“If the big Doge holders sell most of the coins, he gets my full support. Too much concentration is, in my opinion, the only serious problem, ” Musk
wrote at night.
As noted earlier , one Dogecoin address contains 27% of all coins issued to date, and the top 20 addresses over 50%.The fall of most other altcoins is within 10%, that is, it exceeds the indicators of bitcoin, but has not yet resulted in a more serious dump. On the weekly interval, almost the entire top 100 is confidently in the green zone.