Bitcoin Dips 7% to Near $40K; Pullback Will Be Short-Lived
Bitcoin experienced its steepest daily drawdown in almost four months, plunging over 7% in a flash crash. This massive leverage wipe-out sparked a broader crypto market correction, with Ether and various altcoins also sliding.
Analysts suggest this pullback is a healthy correction to shake out excess leverage, providing a more sustainable foundation for future price action. The decline cleared over $520 million in leveraged trading positions, marking the largest daily liquidations in at least three months.
LMAX market strategists anticipate a rally to new highs by year-end, seeing this correction as a necessary step for a stronger market. While some altcoins defied the trend, the overall sentiment remains optimistic, with expectations of a quick recovery and bullish continuations.
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