The sharp recovery in Bitcoin and Ether shows that the bulls remain in control, and every dip is being viewed as a buying opportunity.
Bitcoin (BTC) made a new high above $69,200 on March 5 but then succumbed to massive selling, which pulled the price below $60,000. This capitulation caused $1.17 billion in cross-crypto liquidations, according to monitoring resource Coinglass.
However, the fall did not deter the investors from buying the spot Bitcoin exchange-traded funds. Data from Farside Investors shows a net inflow of $648.9 million into Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust (IBIT) ETF recording its highest inflow of $788 million. This shows a solid appetite for Bitcoin, and if it is maintained, corrections are likely to be shallow.
When the markets are rising sharply, the traders tend to throw caution out of the window and take on too much leverage. That is a quick way of making money in the near term, but it could damage the portfolio if traders are not adept at booking losses when they are small. Therefore, traders should remain cautious and follow trading rules when using leverage for trading.
