Its accompanying chart shows that the excitement phase of the market cycle causes investors and traders to get overexcited by the bull run and decide to leverage everything, but as Ash Crypto pointed out, that may be wrong because there are a lot of liquidations during this period.
spite of the fact that it is a bull market, the #bitcoin price corrects at various times after reaching new highs and closing out overly long positions. #Alex Thorne, head of research at Galaxy Research, also explained earlier this year that the bull market is not linear and a significant price correction is expected.
But in the long run, as prices rise, the bears get an advantage during the bull market. Cryptographer #Ali Martinez recently said that if bitcoin rises to 93,000 yen, more than 88 billion will be liquidated. #BTC reached this level 2 days ago when it rose to a new level of 93,400 Australian dollars.
Since then, the bitcoin price has corrected and is below 990000. This was due to the US inflation data, which came in above forecasts. This development casts doubt on the Fed's willingness to cut interest rates further in 12 months.
Another price correction in the short term?
Ali Martinez suggested that the bitcoin price could fall further in the short term. In a post on the X website, the crypto analyst noted that the daily Relative Strength Index (RSI) indicates that bitcoin is in overbought territory, usually with the possibility of a price correction.
this correction could occur when bitcoin investors try to take profits. Martinez said that BTC profits have reached $55.2 billion and the seller-side risk factor has increased to 0.524%. He warned market participants to remain vigilant and proceed with caution. The Bhutanese government recently sold $33 million worth of BTC, just weeks after it sold $66 million worth of BTC, one of the whales that has already recorded a profit of $ 11 million.
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