Analysts are attributing Bitcoin’s (BTC) plunge on Sep. 7 to the liquidation of over-leveraged positions. According to Bybt data, about $3.68 billion worth of long positions were liquidated in the last 24 hours in the Bitcoin options market.
On-chain monitoring resource Whalemap said the decline was largely caused due to selling by whales who had recently bought their Bitcoin and not by the HODLers. Separately, analyst Willy Woo also said:
“Leverage markets sold off but investor buying just got stronger.”
Every bull market has its share of corrections where weaker hands are shaken out and the stronger hands solidify their position. Therefore, if investors believe in the long-term story, they should not be perturbed by the pullbacks.
A new report by Standard Chartered’s cryptocurrency research team has projected Bitcoin to reach $100,000 “in late 2021 or early 2022” and $175,000 in the long-term. The analysts are also positive on Ether (ETH), valuing it “structurally” between $26,000 and $35,000.
Is the correction in Bitcoin and altcoins over or could there be another leg down? Let’s study the charts of the top-10 cryptocurrencies to find out.