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Bitcoin Correction: Long Squeeze Leads to Price Crash
Bitcoin dominates: Crypto market hits 3-year high after correction. What does this mean for altcoins and the future of Bitcoin? Find out more here.
Bitcoin Correction: Long Squeeze Leads to Price Crash
A drastic downward move in Bitcoin price was caused by a long squeeze that briefly pushed the price below $62,500. In contrast, altcoins were hit even harder, with many top 20 projects seeing price losses of up to 15 percent. These circumstances caused Bitcoin dominance in the crypto market to reach a 3-year high.
The rapid correction in Bitcoin price from $70,800 to $62,100 was triggered by geopolitical events and a long squeeze that saw approximately $310 million worth of Bitcoin positions liquidated in 8 hours. Bitcoin is currently trading at $65,200, down 5.8 percent in the last 7 days and up 2.9 percent in the last 24 hours.
Despite the sideways trend channel between $71,200 and $61,700, Bitcoin dominance has increased compared to altcoins. Many leading top 20 projects experienced price losses of between 15 and 20 percent, impacting their market shares compared to Bitcoin. Bitcoin dominance is currently at 55.7 percent – the highest level in 3 years.
Although the recent price fluctuations in altcoins may worry investors, such movements are historically normal in the altcoin sector. While Bitcoin dominance surges at the start of a bull market, altcoins have the opportunity to regain market share when Bitcoin goes through a consolidation phase.
Overall, strong corrections like the one over the weekend are more likely to cause altcoins to lose more value, increasing Bitcoin dominance. However, it is emphasized that despite this development, altcoins should not be completely written off, as such corrections are common in the crypto market. It remains to be seen how the Bitcoin price will develop in the future.