The recent significant correction experienced by Bitcoin caused great turmoil in the crypto markets. According to current data provided by crypto data provider Coinglass, 119,302 investors were liquidated in the last 24 hours, totaling $409.80 million. With Bitcoin losing value, this correction particularly affected the players in the market.
Over the past day, the value of Bitcoin dropped to $40,300 on crypto exchanges Binance and Coinbase, increasing uncertainty in the market. However, the leading cryptocurrency has made a slight jump from its lowest level in 24 hours and is currently trading at $42,209.
The biggest impact of this correction was seen on Bitcoin traders holding long positions. These traders suffered a loss of over 90.9 million dollars with the correction. During the same period, those who expected Bitcoin to fall in a straight line also recorded losses of over $13.23 million.
Not only Bitcoin but also Ethereum (ETH) traders were negatively affected by this correction. ETH investors, who lost more than $80 million in total, felt the effects of market fluctuations.
This sudden decline and subsequent liquidations increased the uncertainties in the crypto markets and attracted the attention of investors. While experts state that such situations are normal fluctuations that may occur in crypto markets from time to time, they warn investors to update their risk management strategies and follow market conditions closely.
Analyst Credible Crypto also predicted that Bitcoin losses in recent days will be compensated by a V-shaped recovery. According to the analyst, Bitcoin’s value will recover rapidly, rising faster than the typical sideways movements we have seen in the past, and will tend to reach its target of $60,000.
Credible Crypto states that there are huge fluctuations at this stage of the market. However, it does indicate that V-reversals will be much more common than the typical ‘horizontal base period’ we normally see.
“When we experience large swings at this stage of the market, V-reversals are much more common than the typical ‘horizontal base period’ we are used to seeing. To complete this fix we would probably end up with something like the following. So: a sudden V-reversal from these lows to a new low above (basically to complete a flat run), followed by an acceleration to $60,000. This means that although a reversal is imminent, there may be a small sideways movement for a few days before the next sudden move begins.”
The Bitcoin market is often subject to rapid and sudden changes, so investors can expect Bitcoin to rise again after short-term fluctuations. However, given the uncertain nature of the market, it is important for investors to remain vigilant and constantly monitor the current market situation.
You can follow the current price movement here.