Bitcoin Price Recovers Above $58,000: Bear Trap Confirmed?

The price of Bitcoin is back above $58,000, registering an increase of around 3% in the last 4 hours alone.

As reported by CryptoPotato today, the market had lost about $100 billion of its total market capitalization as the price of BTC fell to a monthly low of less than $56,000.

Most altcoins followed suit, trading in red territory. ETH fell to $2,400, while BNB bears were able to push the price towards $510.

Fortunately, the bulls woke up and are now erasing much of the gains. At the time of writing, BTC is trading at $58,400 and most of the losses from the previous decline are gone.

Source: TradingView

Data from Coinglass reveals that this volatility has resulted in nearly $200 million worth of liquidations in the past 24 hours.

Some analysts have pointed out that the decline earlier may have been a trap for sellers looking to take further advantage of the decline.

Bitcoin back above 58k.

Today’s drop may have been a bear trap. pic.twitter.com/MxdfOofC6E

— Duo Nine ⚡ YCC (@DU09BTC) September 4, 2024

Meanwhile, data from IntoTheBlock reveals that there have been a substantial number of buyers between $61,700 and $70,500, who are currently in the red.

According to the data firm’s analysts, as long as a large number of traders take losses, regardless of the range, BTC will face constant selling pressure as the price approaches these levels.

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