Here’s why Bitcoin loses $ 6,000 in just a few hours is good for BTC price action

Bitcoin (BTC) traded just below $ 65,000 on Nov. 11 after an overnight correction canceled the previous rapid surge.

“There is no free lunch” for speculators

Data from Cointelegraph Markets Pro and TradingView show that BTC / USD is recovering from a brief dip in new volatility below $ 63,000.

The pair rallied as US inflation hit a 30-year high, which, along with reactions from the derivatives market, resulted in uncertain price action.

With $ 69,000 now an all-time high, some have voiced their fear while veteran market participants have taken the opportunity to poke fun at the weak.

“Why is BTC pulling out of 68k? There has been a massive spike in BTC margin futures that opened this afternoon (traders are buying BTC with BTC as collateral), ”analyst Dylan LeClair explain along with the graphic from Glassnode.

“There is no free lunch – these dealers are being shaken up right now.”

Analyst William Clemente has cited Taproot’s upcoming soft fork as the obvious reason for a rally and rejected short-term price movements.

Taproot will bring a host of protocol improvements to Bitcoin that are nothing compared to the changes since the introduction of the Segregated Witness (SegWit) transaction technology.

We’re only days away from Bitcoin’s first major upgrade (taproot) since Segwit in 2017 and people are panicking.

– Will Clemente (@WClementeIII) November 10, 2021

The financing rates for derivatives have now proven that a shift has actually taken place and has moved back into a solid neutral range of 0.01% across all exchanges.

Ethereum avoids deeper altcoin retracement

Classically, altcoins feel the heat as Bitcoin reverses, wiping out previous gains that outperformed BTC / USD.

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Ether (ETH) was the least intact coin of the day, down 0.6% and still a long way from all-time highs.

Others are slightly worse, with 4% daily losses, which is not uncommon among the top ten cryptocurrencies by market capitalization.

Cointelegraph employee Michaël van de Poppe concluded in his latest YouTube update: “What counts at this point: Bitcoin.”

“Where are we going to break out? If we break that zone at $ 67,000, I believe we will continue the bull cycle and be ready to hit a new all-time high. “