Bitcoin hit new lifetime highs of around $ 50,000 this morning, eliminating excessive bullish leverage in the derivatives market with a rapid price drop on Monday.
The highest cryptocurrency by market cap, according to CoinDesk 20 data, traded at a record high of $ 49,950.93 around 08:00 UTC on Tuesday, and was most recently traded around $ 49,280, and 2% during the day, according to CoinDesk 20 data. It made a profit of 8.
Prices fell below $ 45,926, down $ 3,000 during early Asian trading hours on Monday, triggering long liquidations worth about $ 392 million in the derivatives market.
Although the bottom is short-lived, there has been no break above $ 50,000 so far. According to Patrick Heusser, head of commerce at Switzerland-based Crypto Finance AG, Bitcoin now needs your help from cash / spot buyers to surpass $ 50,000.
“Everyone in derivatives has done their job and looks exhausted,” Heusser told CoinDesk, adding that prices could consolidate between $ 44,000 and $ 50,000 if spot buyers continue to sit on the fence.
The cryptocurrency’s recent rally, starting at $ 40,000, was mainly due to leverage in derivatives, and spot market volumes on institutional-focused exchanges such as Coinbase Pro have cooled, as discussed Monday.
The Coinbase premium indicator, which specifically measures the difference between Coinbase Pro’s BTC / USD pair and Binance’s BTC / USDT pair, continues to report negative values, as stated by Ki-Young Ju, CEO of blockchain analytics firm CryptoQuant, is on Tuesday. A negative premium indicates weak corporate entries.