Bitcoin Price Recovers Above $58K: Bear Trap Confirmed?

Bitcoin’s price is back above $58K, registering an increase of around 3% in the past 4 hours alone.

As CryptoPotato reported earlier today, the market had shed some $100 billion off its total market capitalization as the BTC price dropped to a monthly low of under $56,000.

Most of the altcoins followed suit, trading deep into red territory. ETH plunged to $2,400, while BNB bears were able to push the price toward $510.

Fortunately, the bulls woke up and are now erasing much of the gains. At the time of this writing, BTC trades at $58,400 and most of the losses from the drop earlier are gone.

Data from Coinglass reveals that this volatility has resulted in almost $200 million worth of liquidations in the past 24 hours.

Some analysts have noted that the drop from earlier may have been a trap for sellers looking to further capitalize on the decline.

Bitcoin is back above 58k.

Today’s drop may have been a bear trap. pic.twitter.com/MxdfOofC6E

— Duo Nine ⚡ YCC (@DU09BTC) September 4, 2024

Meanwhile, data from IntoTheBlock reveals that there has been a substantial number of buyers at the range between $61,700 and $70,500, who are currently sitting at a loss.

According to analysts from the data firm, whenever a large number of traders are at a loss, regardless of the range, BTC will be facing consistent selling pressure as the price approaches these levels.