Bitcoin has made a notable resurgence, recovering previous losses and rekindling optimism for a move towards $60K.
After falling to a low just under $56,000, Bitcoin has rebounded, rising above $58K with an impressive 3% gain in merely four hours.
Earlier today, the cryptocurrency market experienced a setback, losing $100 billion from its total market cap as BTC dropped to a monthly low.
Altcoins were likewise affected, with ETH plunging to $2,400 and BNB edging down toward $510.
Nevertheless, the bulls have come back, reclaiming much of the lost territory. Currently, Bitcoin is trading at $58,000, close to wiping out the earlier losses.
According to data from Coinglass, this tumultuous day resulted in nearly $200 million in liquidations within the last 24 hours.
Some analysts propose that the earlier drop could have been a trap for sellers anticipating further declines.
Bitcoin is back above 58k.
Today’s drop may have been a bear trap. pic.twitter.com/MxdfOofC6E
— Duo Nine
YCC (@DU09BTC) September 4, 2024
Simultaneously, data from IntoTheBlock reveals that a significant number of buyers entered the market between $61,700 and $70,500, now experiencing losses.
The analytics firm states that when a large segment of traders are in the red, Bitcoin often faces persistent selling pressure as the price approaches these levels.
Why Bitcoin is Struggling to Reach a New High
Nearly 7 million addresses acquired Bitcoin between $61.7k and $70.5k.
With a large number of traders in this range at a loss, $BTC faces consistent sell pressure whenever prices approach these levels, as many look to break even.… pic.twitter.com/mNp52UylwO
— IntoTheBlock (@intotheblock) September 2, 2024
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