This is why Bitcoin’s loss of $6,000 in a few hours is beneficial to BTC price movements

Bitcoin (Bitcoin) On November 11, the transaction price was slightly lower than $65,000. The previous overnight correction offset the previous rapid rise.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

“Free lunch” for speculators

Data from Cointelegraph Markets Pro with Transaction view BTC/USD briefly fell below $63,000 in the new volatility and then rebounded.

This pair has rapidly increase In the context of U.S. inflation reaching its highest level in 30 years, this combined with the reaction of the derivatives market has produced uncertain price trends.

Now that US$69,000 is at a record high, some people feel scared, while experienced market participants take this opportunity to make fun of weak players.

“Why did BTC pull back from 68k? This afternoon, the open interest of BTC margin futures increased significantly (traders use BTC as collateral to do long BTC),” analyst Dylan LeClair explain Next to it is the graph of Glassnode.

“There is no free lunch-these traders are being eliminated.”

Annotated chart of open positions in Bitcoin futures.Source: Dylan Leclerc/Twitter

Analyst William Clement pointed out the upcoming Taproot soft fork As a clear reason to be bullish and give up short-term price changes.

Taproot will bring a series of protocol improvements to Bitcoin that are not comparable to any changes since the introduction of Segregated Witness (SegWit) trading technology.

At the same time, the derivative financing interest rate proved to have indeed fluctuated, and it firmly returned to Neutral territory 0.01% of each exchange.

Ether avoids deeper altcoin retracements

In the classic style, with Bitcoin’s reversal, altcoins felt the heat and erased the return that had previously performed better than BTC/USD.

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Ether (Ethereum) Was the most unscathed of the day, down 0.6%, still a stone’s throw away from historical highs.

ETH/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Others performed slightly worse. Among the top 10 cryptocurrencies by market capitalization, it is not uncommon to lose 4% every day.

“It’s vital at the moment: Bitcoin,” Cointelegraph contributor Michaël van de Poppe concluded in his latest report. YouTube updates.

“Where are we going to break? If we break through the area around $67,000, I think we will continue the bull market cycle, and we are ready for a new record high.”