Key Points
- Bitcoin (BTC) nearly reached new all-time highs on March 5, but a swift reversal led to a $2,000 drop.
- The United States' largest exchange, Coinbase, experienced another outage during this period.
On March 5, Bitcoin (BTC) was on the brink of setting new all-time highs, but a sudden market reversal led to a significant drop.
The value of BTC came within inches of $69,000. Despite a daily increase of $5,000, the market couldn't sustain the momentum, leading to a reversal back to the $66,000-area.
Market Volatility and Liquidation
In a matter of hours, a sudden market volatility led to a $2,000 drop in BTC value. This event resulted in the liquidation of approximately $20 million in long positions, according to data from CoinGlass.
This incident caused a temporary decrease in the record high open interest, which quickly rebounded to approximately $31 billion at the time.
Technical Difficulties at Coinbase
In a recurring event from the previous week, the largest US exchange, Coinbase, suffered another outage. This led to customers' balances showing as zero, leading to increased criticism.
James Van Straten, a research and data analyst at CryptoSlate, suggested that Coinbase had the technical capacity to handle the load and that other factors were likely involved. Coinbase later confirmed that the issue had been resolved.
Market Confidence Despite Setbacks
Despite the setbacks, market participants remained confident about Bitcoin's potential to break through the final hurdle before price discovery. Some traders compared the current mood to the 2020 breakout, which surpassed the previous all-time highs set in 2017.
Jelle, a fellow trader, dismissed the idea that $69,000 would remain a "triple top" pattern for BTC/USD. He further predicted a fresh surge for altcoins once Bitcoin breaks its all-time high, aligning with historical precedents.
