Bitcoin Falls to $56,000 and Recovers, Volatile Altcoins (Market Watch)

The last 24 hours have seen substantial movement in Bitcoin and many altcoins. The price action resulted in a mixed performance, with some of the cryptocurrencies posting slight gains while others showed slight declines.

Bitcoin price hovers around $58,000

Many analysts have touted the $58,000 price region as an important liquidity zone, and the cryptocurrency’s behavior around it is likely to determine its future direction.

Yesterday, bears tried to push BTC below this level and managed to push the price down to $56,200 on certain exchanges.

Source: TradingView

As can be seen in the chart above, buyers reacted very quickly and staged a recovery, taking the price above the pivotal $58,000, where it is currently trading.

According to data from Coinglass, this move resulted in about $200 million in short and long positions being liquidated in the derivatives market.

As reported by CryptoPotato, about $1.4 billion worth of Bitcoin options contracts will expire today. This can lead to additional volatility, so keep your eyes on the charts.

Altcoins also volatile

As mentioned at the beginning, the volatility resulted in mixed price performance, with some altcoins managing to make some headway, while others faltered and posted slight declines.

For example, both DOGE and SHIB, the largest representatives of the meme coin sector, are down 1.2%, while large-cap coins such as XRP, SOL and BNB managed to rise 0.5% after the moves from last night

Source: Quantify Crypto

Regardless, the broader sentiment in cryptocurrency markets remains fearful. The popular tracker, which measures market sentiment, currently indicates a value of 27, meaning that the industry is currently in a state of “fear”. This is down from yesterday’s value of 29 and a considerable drop from last week’s value of 48, when the market was in a more neutral state.

It will be interesting to see how the price action will play out over the weekend.

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