Bitcoin hits ATH, descends into massive crash, then recovers, all in 24 hours

Bitcoin hit the all-time-high on Tuesday. Then a heavy dump of $10,000 ensued. From the bottom of this crash, the price recovered more than $8,000. All within a 24-hour period.

Trading and speculating on bitcoin is currently far from boring. In fact it is an edge-of-the-seat, teeth-clenching ride – and if you’re not buckled in tight, this bucking bronco is likely to throw you off in an instant.

ATH sparks massive crash

Source: Coingecko/Trading View

The merest touch of $69,000 was enough from bitcoin. Once the all-time-high was confirmed there followed a series of red candles, and finally a huge flush-out candle that took the price all the way back down to $59,000. Support levels at $61,300 and $62,800 were rebounded from.

Liquidations and longs vs shorts

With such a violent seesaw correction, both shorts and longs were liquidated. According to analytics platform Coinalyse, $163 million in longs were liquidated on the way down, and $87 million were liquidated on the way back up.

Even though the bulls appear to be back in charge again, the long to short ratio is only 59%/41% in favour of the longs, meaning that many are still thinking that this downward movement can be reinitiated.

Bitcoin ETFs do record trading volumes

While all the wild price action was taking place on bitcoin, the 10 Spot Bitcoin ETFs did record daily trading volume of $10 billion – a figure that far surpasses the previous record set last week.

MILESTONE: the ten Bitcoin ETFs did $10b in volume today, smashing prev record set last Wed.. Volatility and volume go hand in hand with ETFs so not totally surprised. That said these are bananas numbers for ETfs under 2mo old. $IBIT, $FBTC, $BITB, $ARKB all w record days. pic.twitter.com/rIdbhoYifV

— Eric Balchunas (@EricBalchunas) March 5, 2024

Bloomberg ETF Analyst Eric Balchunas said of the record volume in a tweet: “These are banana numbers for ETFs under 2 months old”, as Blackrock, Fidelity, Bitwise, and Ark Invest, all broke their volume records.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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