The Bitcoin course BTC price has fallen sharply and is recording great losses. The Bitcoin course quickly lost value. This is also known as a BTC dump. The picture shows a crumbling Bitcoin price on a descending price graph.
The recent rapid crash of the Bitcoin price has taken its toll. Nearly $ 1 billion worth of BTC futures contracts were once again wiped out. But was this the end of the correction or was it just the beginning?
Almost $ 1 billion in Bitcoin (BTC) futures contracts was liquidated on January 13th today.
The continuous loop of liquidations causes extreme volatility and large price fluctuations in the cryptocurrency market and especially in the Bitcoin Legacy price itself. So yesterday only $ 410 million in BTC long positions were liquidated on Binance. This was the highest daily value of liquidated futures contracts to date.
Why this is all pretty normal for Bitcoin
The Bitcoin price crash came pretty quickly and violently. Within a very short time, the price per BTC fell by over -26%.
In the course of a parabolic soaring Bitcoin price, which reached new record prices of over $ 41,000, public attention around BTC increased noticeably and attracted many new investors into the market. They are often shocked by the volatility of the Bitcoin price and fear that they have bought the tip of a bubble again.
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However, if we look at the bullrun in 2017, we see that such and larger price corrections are completely normal for Bitcoin, even in an upward trend.
The above figure shows that during the upward trend in 2017 there were a total of 9 price corrections between -25% and -42%. This means that the current price correction of around -26% is still at the lower end of what we are used to from the Bitcoin price.
Bitcoin course correction could continue
Quite a few consider the current correction to be complete. For example, the pseudonymous trader known as the “Byzantine General” noted that the $ 30,000 area has become an important level of support.
Therefore, many interpret the cooling of the Bitcoin futures market while at the same time consolidating the $ 30,000 area as a very optimistic sign for the Bitcoin price and its medium-term prospects.
But there are also signs that this is only halfway through a major correction. Many fear that if the Bitcoin price falls again, a head-and-shoulders formation could form on the BTC chart.