On September 7th, traders were nearly caught flat when a sharp dip in the Bitcoin breakthrough took place. The price of this digital coin has fallen below the $ 43,000 mark. This has resulted in widespread liquidation in the derivatives markets. It has liquidated more than $ 3.54 billion.
A bullish sentiment set in on the US Labor Day Holiday weekend when Bitcoin was officially recognized as legal tender in El Salvador. But the 16% drop in Bitcoin price caused that celebration to be wiped out.
The data shows that the sell-off in Bitcoin began in the early hours of trading. It accelerated through noon as the price of Bitcoin fell much lower to the $ 42,837 mark before Dip buyers bid it back to the $ 46,500 mark.
On-chain analyst Willy Woo offered a fact-based analysis of the current market situation. He posted a tweet outlining the developments on September 7th. The broader financial markets have opened a risk-free day. It has put pressure on the crypto market that has cascaded over the hours. The resulting decline has resulted in a $ 1.1 billion bitcoin liquidation. However, the on-chain data does not suggest that investors are rushing to close their position. The latest activity shows that the stock exchanges are back in the buying mood.
A follow-up tweet from Woo revealed how the September 7 move came unexpectedly. It’s a good reminder that risk management needs to be considered in the crypto market.
Further analysis of this movement in Bitcoin was provided by Michael van de Poppe. He highlighted the role traders indebted to in the day’s price movement. If BTC manages to close above the $ 47,000- $ 48,000 range after this pullback, it will be viewed as an outline of the early trend in his opinion. It will serve as a good buying opportunity.
Not all participants in this market have overlooked this downward movement. A follow-up tweet from Crypto_Ed_NL underscores that BTC made the green box. Now is the time to see how it bounces.
The total market cap of crypto is now $ 2.103 trillion. Bitcoin’s dominance rate is 42.1%.