Bitcoin

when

Material

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) is rapidly recovering from its $10,000 BTC price drop as wild volatility keeps up pressure on traders.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/fb5e0a9a-5d11-40f8-b43d-7a5d9639f963.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: TradingView
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="derivatives-show-btc-price-bets-are-already-back">Derivatives show BTC price bets are already back&nbsp;</h2>
Data from <a href="https://subscription.cointelegraph.com/">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> shows BTC/USD clawing back more than half its March 5 losses.
That day saw Bitcoin finally reclaim its <a href="https://cointelegraph.com/news/btc-price-corrects-bitcoin-pre-halving-all-time-high">all-time highs from November 2021</a>, but whales were lying in wait for late longs on over-leveraged markets.
“There aren’t less people wanting to own bitcoin after this flush,” popular Bitcoin personality Hodlonaut wrote in part of <a href="https://twitter.com/hodlonaut/status/1765166598258622668" target="_blank" rel="noopener nofollow">commentary</a> on X. 
<blockquote data-ct-non-breakable="true">
 “This was a case of big whales moving the market like a wave, sending thousands of over-leveraged or under-informed small fish into their mouths.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/b1517037-b4eb-468f-aa7b-5f7dfb669c64.png" alt="" title="">
 <figcaption style="text-align: center;">
 Crypto liquidations (screenshot). Source: CoinGlass
 </figcaption>
</figure>
<a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">According</a> to data from monitoring resource CoinGlass, the drop, which bottomed near $59,300 on Bitstamp, claimed $1.17 billion in cross-crypto liquidations. The majority of these were longs.
Examining market structure, however, a cathartic effect is visible, with funding rates across exchanges seeing a modest reset from levels that observers argued were unsustainable.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/66d427b5-cd64-403b-a4ec-f89030452745.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC funding rates&nbsp;(screenshot). Source: CoinGlass
 </figcaption>
</figure>
Open interest tells a similar story, but the latest estimates show this building in line with the BTC price comeback after an initial $3 billion flush.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/5c011b0a-8323-4ad6-8984-4bd382973fa5.png" alt="" title="">
 <figcaption style="text-align: center;">
 Exchange Bitcoin futures open interest&nbsp;(screenshot). Source: CoinGlass
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="bitcoin-order-book-shows-whale-move-ongoing">Bitcoin order book shows whale move ongoing</h2>
On the topic of trader behavior, meanwhile, trading resource Material Indicators is showing whales potentially shifting expectations of what is to come.
Related:&nbsp;<a href="https://cointelegraph.com/news/bitcoin-analysts-say-btc-price-correction-is-just-healthy-consolidation">Bitcoin analysts say BTC price correction is just ‘healthy consolidation’</a>
A block of bid liquidity on largest global exchange Binance has headed higher, providing what potentially cushioned the correction from $69,000.
“On Feb 28th whales moved $54M in BTC USDT bid liquidity on @binance from the $36k - $38k range and turned it into a buy wall at $52k. FireCharts shows that today they moved more than half ($27M) of that buy wall and converted it into a bid ladder that climbs from $60k - $65k,” Material Indicators <a href="https://twitter.com/MI_Algos/status/1765078444042551806/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in part of accompanying comments, adding:
<blockquote data-ct-non-breakable="true">
 “Too early to tell if this will be the extent of the pullback (for now), but it’s clear that a large entity either has concern that price won’t dip to $52k, or doesn’t want to allow price to go that low.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/8d5fb032-04d1-47b3-ae27-576a346f8411.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USDT order book liquidity for Binance. Source: Material Indicators/X
 </figcaption>
</figure>
Elsewhere, a popular comparison to BTC price behavior in late 2020 — when previous all-time highs were broken — continues to circulate.
Then, BTC/USD also saw a snap retracement, spending around two weeks below the new highs before finally breaking out.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/e162dc04-5350-43bb-b9cc-2b5f3d0862d1.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin chart from 2020 vs. 2024. Source: <a href="https://twitter.com/smilinglllama/status/1765111504192282915" target="_blank" rel="noopener nofollow">Smilinglllama on X</a>
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

What 15% BTC price crash? Bitcoin bulls charge higher as $67K returns

Table of Contents

Cointelegraph

Other articles published on Mar 6, 2024

Spain to Ban Worldcoin: Report

Is Dogwifhat Price Heading to $2.5? Whale Accumulation Hints WIF’s Peak is Yet to Come

Cryptocurrency Open Interest Plummets After Bitcoin Hits New ATH

Saudi Arabia Launches Kawn Culture, the World’s First National Cultural Metaverse

Bitcoin and Crypto Market Latest Update

SEC Commissioners Criticize ShapeShift Settlement for Lack of Clarity

Join our free newsletter for daily crypto updates!