Bitcoin endured a turbulent trading session on February 20th, with price circulation sending the flagship cryptocurrency to a fleeting new 2024 high of $53,019 before abruptly crashing down to the $50,000 level.
The considerable volatility and parallel moves across altcoins yielded nearly $300 million in liquidations over the past 24 hours as overleveraged longs were caught wrong-footed. Two-thirds of the liquidations stemmed from long positions, indicating the abrupt reversal after BTC touched the $53K level took many bulls by surprise.
Analysts have attributed the latest BTC spikes to inflows into spot Bitcoin exchange-traded funds, or ETFs, which hit consistent daily record highs last week.
However, Bitcoin has struggled to maintain upward momentum after crossing the psychological $50K barrier multiple times recently. This resistance area has proven a tough nut to crack over the past year.Â
Bitcoin’s ride on the price rollercoaster had ripple effects across altcoins as well yesterday. Ethereum surpassed $3,000 for the first time since April 2022 but has already given back nearly all those gains.
Most of the altcoins trended upward. Other altcoins have lost ground from 24 hours ago, with Cardano taking the biggest hit at 5%. Solana, Avalanche, Polkadot, Chainlink, Internet Computer, Aptos, Near Protocol, and more also remain etched in red.
The market illustrates the high-stakes risks of overexposure in the notoriously volatile crypto sector. With Bitcoin struggling to surmount key overhead resistance firmly, traders may continue witnessing elevated price oscillations.
