The price of Bitcoin rocketed to a new all-time high on Tuesday, fueled by a new wave of investors pouring money into U.S. spot BTC exchange-traded funds (ETFs) and the forthcoming halving event. However, the excitement was short-lived as the largest digital asset by market cap has since dropped by over 7%, changing hands for just $62,705 at press time.
Bitcoin nosedived $6,000 on March 5 after hitting a fresh lifetime high of $69,322. Heavy selling pressure sent the top crypto to sub-$65,000.
As ZyCrypto reported earlier, BTC was momentarily valued at over $69K on America’s largest crypto exchange, Coinbase, exceeding the all-time high set during the 2021 bull market. As market pundit Samson Mow posited, this marked the first time that Bitcoin shattered a new record level before a miners’ reward halving event.
However, Bitcoin retreated sharply after notching an all-time high. The pullback wiped out over $33.48 million in long positions, data from Coinglass shows. Longs let trades bet on the price of Bitcoin soaring in the future. This means those who bet on the price of the BTC climbing have lost out, and their positions were forcibly closed.
“It’s perfectly normal for Bitcoin to pull back from the all-time high (this happens every cycle),” cryptocurrency author and educator Vijay Boyapati contended on the X (previously Twitter) platform.
“Large sellers use the anticipation of the moment to dump into a high liquidity moment. Importantly the psychological wall is broken and true price discovery will eventually begin.”
Interestingly, major altcoins such as ether (ETH) and Solana’s SOL bucked Bitcoin’s trend, registering gains of 3.7% and 5.4% respectively, according to CoinGecko.
It seems that Bitcoin will enter a range-bound phase before making another go to smash the $69,000 resistance zone decisively. But with the supply crunch of the block subsidy halving roughly 42 days away, things could get very interesting from here.
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