Bitcoin price faced an extreme correction earlier today. Over the span of 12 hours, BTC plunged from the $41,000 region to lows on spot exchanges below $33,000.
January 11, 2020 | AtoZ Markets – The past 12 hours have been rather tense on the cryptocurrency market. Bitcoin, as well as other cryptocurrencies, went through a massive correction, resulting in almost $1.4 billion liquidations in 12 hours.
Bitcoin price cools off below $33,000
Today, January 11, the price of the leading cryptocurrency fell below the level of $33,000. At around 6:48 GMT, Bitcoin price plummeted to $32,365 on Bitstamp cryptocurrency exchange. However, at the time of writing, the BTCUSD pair is trading at $34,530
The fall in price led to the liquidation of traders’ positions in the Bitcoin derivatives market in the amount of $1.49 billion in 24 hours. The volume of liquidated positions for all coins amounted to almost $2.7 billion. The largest single liquidation order happened on BitMEX on the ETH perpetual contract and it was worth a whopping $22.24 million.
Northman Trader founder Sven Henrich noted earlier that buyers had raised the weekly RSI in Bitcoin futures to above 93, indicating the asset’s highest overbought level.
Crypto Quant CEO Ki Yoon Joo drew attention to the local maximum of the index of positions of miners – this means that they sell bitcoins, fixing profits.
Miner Position Index looks enough to make a local top. They're selling $BTC.— Ki Young Ju 주기영 (@ki_young_ju) January 10, 2021
I'm going to punt a small short to scalp $BTC in this short-term bearish market.
Chart 👉 https://t.co/RbSJ9xbC56 pic.twitter.com/7RbQN7BgwW
Bitcoin price correction will be short-term
Moreover, well-known trader Ton Weiss believes that the price correction will be short-term. By the end of January, Weiss expects new historical highs in the quotes of the leading cryptocurrency.
Together with Bitcoin, prices of other leading cryptocurrencies have also dropped. Market capitalization fell below $1 trillion (according to CoinMarketCap).
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