Bitcoin recently surged to a new all-time high of $69.3K, only to swiftly retrace over 7% to $59.3K.
This volatility sparked speculation among traders, especially those with limit orders just above previous ATH levels. The market’s response to this retest will be crucial in gauging sentiment moving forward.
đź“Š #Bitcoin has scraped above its new #AllTimeHigh, reaching as high as $69.3K before markets quickly retraced -6.9% to $64.5K. With many limit orders being set just above previous #ATH levels, the crowd's reaction to a retest will be telling. https://t.co/7dKJvjTv0z pic.twitter.com/SKHAucMfux
— Santiment (@santimentfeed) March 5, 2024
Santiment data indicates a persistently high ratio of long positions on Binance, though this could shift post-ATH.
Additionally, there has been a notable decrease in the number of non-zero BTC wallets for the first time in 8 days, signaling a potential shift in investor behavior.
Total open interest on exchanges for Bitcoin saw a significant drop of $1.46B (-12%) following the recent ATH.
This decline reflects the unwinding of speculative trades, including closures of long positions and liquidations of those longing for $70K BTC.
👍📉 Total open interest on exchanges for #Bitcoin, #Ethereum, and #Solana have declined significantly after the $BTC #AllTimeHigh earlier today. Many other assets not pictured show similar drops. Open interest is the amount of unsettled derivative contracts, mainly futures and… pic.twitter.com/NA3wJgaj0l
— Santiment (@santimentfeed) March 6, 2024
Today’s decline in exchange open interest highlighted the flushing out of excessively speculative trades, including those longing for the BTC ATH and anticipating $70K BTC.
Despite market corrections, the long-to-short ratio remains high, suggesting ongoing market optimism.
Further Onchain Whale Reports On BTC And BTC ETFs Reports
On-chain reports revealed a dormant whale depositing 1,000 BTC ($67.1M) to Coinbase at $67,116, potentially contributing to the recent market correction.Â
A dormant whale woke up after 14 years to deposit all 1,000 $BTC ($67.1M) to #Coinbase at $67,116 ~20 hours ago, allegedly contributing to the recent market crash!
The whale minted those $BTC in 2010 when the price was below $0.28, suggesting that the whale might just have taken… pic.twitter.com/VBj6VvzAuH
— Spot On Chain (@spotonchain) March 6, 2024
This whale, having minted BTC in 2010 when prices were below $0.28, may have realized significant profits.
According to SoSoValue data, Bitcoin spot ETFs saw a net inflow of $648 million on March 5th.Â
According to SoSoValue data, on March 5th, the total net inflow to Bitcoin spot ETFs was $648 million. Grayscale ETF GBTC experienced a net outflow of $332 million yesterday, while the Bitcoin spot ETF with the highest net inflow was BlackRock ETF IBIT, with a daily net inflow of… pic.twitter.com/vR5QKtJY5e
— Wu Blockchain (@WuBlockchain) March 6, 2024
Notably, Grayscale ETF GBTC experienced a net outflow of $332 million, while BlackRock ETF IBIT recorded a daily net inflow of $788 million, setting a new record. The total historical net inflow to IBIT now stands at an impressive $9.167 billion.
In summary, Bitcoin’s recent price surge and market dynamics underscore the cryptocurrency’s inherent volatility and complexity.
While ATHs attract attention, market corrections and investor behavior provide deeper insights into the evolving landscape of digital assets. As Bitcoin continues to captivate markets worldwide, investors must navigate volatility with caution and a long-term perspective.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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