Bitcoin has been unable to maintain its price gains over the past few weeks, with most of the upward moves being driven by futures markets. This has resulted in the spot market struggling to keep up, with price gains outpacing actual buy demand for Bitcoin. The recent volatility and price reversals in Bitcoin have been largely driven by leveraged trading and liquidations in futures markets, which has led to impulsive moves upward and downward that lack strength and sustainability. With highly leveraged and unstable dynamics currently driving Bitcoin’s price action, traders should protect their capital and avoid getting chopped up in the market.
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