Bitcoin Price Recovers Above $58K: Bear Trap Confirmed?

Bitcoin has recovered most of the losses incurred earlier today. Is $60K incoming?

Bitcoin’s price is back above $58K, registering an increase of around 3% in the past 4 hours alone.

As CryptoPotato reported earlier today, the market had shed some $100 billion off its total market capitalization as the BTC price dropped to a monthly low of under $56,000.

Most of the altcoins followed suit, trading deep into red territory. ETH plunged to $2,400, while BNB bears were able to push the price toward $510.

Fortunately, the bulls woke up and are now erasing much of the gains. At the time of this writing, BTC trades at $58,400 and most of the losses from the drop earlier are gone.

Source: TradingView

Data from Coinglass reveals that this volatility has resulted in almost $200 million worth of liquidations in the past 24 hours.

Some analysts have noted that the drop from earlier may have been a trap for sellers looking to further capitalize on the decline.

Meanwhile, data from IntoTheBlock reveals that there has been a substantial number of buyers at the range between $61,700 and $70,500, who are currently sitting at a loss.

According to analysts from the data firm, whenever a large number of traders are at a loss, regardless of the range, BTC will be facing consistent selling pressure as the price approaches these levels.

Source: cryptopotato.com

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Technical analyst/Trader/Official FYBIT ambassador/Supporter. I have experience in stock trading and forex, but most of all I am fascinated by crypto. In my trading, I like to rely more on technical analysis. Over the years, I have created a lot of profitable trading strategies, over time I began to develop software for automated trading. Now I provide support to FYBIT users, thereby helping FYBIT platform to develop and improve.