After tapping a new all-time high just one week ago, a sharp correction has sent the price of Bitcoin below the $60,000 mark.
A precipitous drop in BTC and the overall crypto markets over the past 24 hours has triggered liquidations across exchanges as traders found themselves unable to meet margin requirements in their leveraged positions.
The dollar value of liquidated positions in the crypto markets surpassed $930 million in the last day alone, according to analytics firm Bybt.
Crypto investor and analyst Justin Bennett says that despite the sudden price drop, BTC appears primed to follow the same path it did last month.
Bennett tells his 85,000 Twitter followers that BTC’s pullback, which saw the king crypto tumble from $62,789 to $58,178 in a matter of hours, mirrors a similar move in September.
“This BTC pullback is starting to look like a condensed version of September. A scaled version puts the bottom at $55k – $57k.”
Bennett says he believes the worst is likely over for the altcoin markets. He says even if BTC experiences further dips, altcoins probably won’t see any dramatic drops.
“Today was the big liquidity flush. VeChain [VET] $0.117, Cardano [ADA] $1.80, etc.
The bottom is most likely already in even if BTC drops another 5-7%… The big picture still looks constructive, and that’s what matters.”
Bitcoin is exchanging hands at $58,729 at time of writing, according to CoinGecko, while the altcoin market is hovering around $1.357 trillion.
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