Bitcoin (BTC), the largest cryptocurrency, recorded $467 million in liquidations in the last 24 hours. After this shakeout, Bitcoin (BTC) markets look cleansed, to CryptoQuant's community analysts. While the paper hands are selling, someone is injecting resources into "buy the dip" opportunities.
Bitcoin (BTC) market cleaned out
Bitcoin's (BTC) price drop, accompanied by the largest liquidation of long positions in recent times, has resulted in the "cleansing" of the market and put an end to the multi-month Bitcoin Futures Open Interest uptrend. Such analysis was shared by Mignolet, a verified community author of CryptoQuant.
The analyst avoided comparing today's collapse to the dramas of November 2022, let alone 2020 Crypto Black Friday. However, this definitely was the most brutal day for Bitcoin (BTC) bulls in months.
At the same time, the market indicators demonstrate that so many people "full of expectations" were liquidated. Bitcoin OI has finally gotten the cool-down it badly needed.
That said, while the markets are up to more periods of high volatility ahead, the analyst believes that whales will be able to restore the status quo.
As of press time, Bitcoin (BTC) recovered to $98,500, almost erasing today's painful losses.
Someone aggressively buying this dip, data says
Also, the researcher added that the indicator of Coinbase Premium, among others, demonstrates how powerful are the efforts of large players to buy the dip.
Both the Coinbase and Kimchi premiums stayed positive during the whole process of crypto plunging today. The Korean indicator even jumped to a three-year high, as covered by U.Today.
CryptoQuant's CEO Ki Young Ju explained it by the strength of U.S. Dollar Index (DXY) and not by increased activity of South Korean market participants.
