A Bitcoin price dip for ants? BTC quickly rebounds to a new high above $57K

A Bitcoin price dip for ants? BTC quickly rebounds to a new high above $57K


The price of Bitcoin (BTC) dipped to as low as $53,905 on Binance overnight, recording a sudden 6% drop. But despite the minor correction, the price of Bitcoin quickly recovered thereafter, reaching a new all-time high above $57,800 on Feb. 21.

BTC/USDT 4-hour price chart (Binance). Source: TradingView.com Why did Bitcoin drop and recover so quickly?

Although Bitcoin saw a steep drop within merely hours, analysts pinpointed that it fell to the exact bottom of a short-term trendline.

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John Cho, the Director of Global Expansion at Ground X, noted that the drop was a liquidity fill at a lower price.

$BTC just needed a little liquidity that’s all. https://t.co/XTeAYPROWz pic.twitter.com/zlkcBAAI4x

— John Cho (@JohnCho__) February 21, 2021

A liquidity fill simply means when an asset drops after stagnating to fill buy orders at the bottom of the range

A drop was expected because Bitcoin was consolidating with the futures funding rate at around 0.15%.

Across major futures exchanges, the Bitcoin

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