Bitcoin (BTC) came close to reaching new all-time highs on March 5 before experiencing a sudden drop in volatility that resulted in the liquidation of late trades.
Data from Cointelegraph Markets Pro and TradingView showed that the price of BTC came within inches of reaching $69,000. Despite daily gains of $5,000, the significance of this price level became apparent as bulls were unable to push through. As a result, the market experienced a reversal and BTC dropped back to the $66,000 range.
A few hours later, there was a flash volatility event that caused BTC/USD to drop $2,000 in just three minutes. This event resulted in the liquidation of around $20 million in long positions, according to data from monitoring resource CoinGlass.
This sudden drop in volatility also impacted the record-high open interest, which initially dipped but quickly rebounded to reach $31 billion at the time of writing.
In a repeat of events from a week ago, Coinbase, the largest cryptocurrency exchange in the United States, experienced another outage. Similar to before, customer balances temporarily showed as zero, leading to criticism. However, James Van Straten, a research and data analyst at crypto insights firm CryptoSlate, suggested that Coinbase had the technical capability to handle the load and that there were other factors at play behind the scenes. Coinbase’s support account later confirmed that the issue had been resolved.
Despite these setbacks, market participants remained confident that Bitcoin could break through the final hurdle before entering price discovery. Trader Kaleo compared the current market sentiment to the breakout in December 2020 when Bitcoin surpassed its previous all-time high of $20,000. Fellow trader Jelle dismissed the idea that $69,000 would form a “triple top” pattern for BTC/USD.
Looking ahead, there are predictions of a fresh surge in altcoins once Bitcoin breaks its all-time high, which aligns with historical trends. However, it is important to note that this article does not offer investment advice or recommendations, and readers should conduct their own research before making any decisions.