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What Bitcoin's Weekend Dip Means for the Crypto Bulls

decrypt.co

4 hour ago

What Bitcoin's Weekend Dip Means for the Crypto Bulls

A weekend sell order from a large buyer has triggered a flash crash for the world’s largest crypto, forcing over half a billion dollars in liquidations. The sell order of 24,000 BTC, worth $2.7 billion, catalyzed a 3.74% correction in under ten minutes, resulting in $623 million in liquidations, according to data from CoinGlass. Still, Bitcoin is up 2.41% from its weekend low of $110,484 and is currently trading near $113,169, according to CoinGecko data.  “Should be much easier to go up once short-term momentum clears and price moves above $113,500 - $114,000,” Alex Krüger, a crypto trader and founder of Aike Capital, posted Sunday on X. Despite the whipsaw price action, some experts suggest this sell-off is not a sign of bearish sentiment, but rather a healthy function of a maturing market. “The price has stalled because a number of whales have hit their magic number and are unloading,” Vijay Boyapati, a software engineer and expert in crypto and economics, posted on X.  He reiterated that whale selling is a healthy event and is “required for the full monetization of Bitcoin.”  The whale still holds a massive 152,874 BTC, worth an estimated $17.3 billion, according to Sani, a Bitcoin onchain analyst and founder of the Timechain Index. The sell-off was likely amplified by existing market conditions such as “thin weekend liquidity” and a “build-up of leverage long positions” over the past week, Sean Dawson, head of research at on-chain options platform Derive, told Decrypt.  Options data on Derive shows “bullish posturing for Bitcoin around the $135,000 to $155,000,” strikes while the recent "drawdown has done little to shake the bullish traders," Dawson highlighted.

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