Bitcoin’s price continued to stabilize around $60,000 on Wednesday after dropping nearly 15% from an all-time high near $69,000.
“The drop seems to be related to excessive leverage in the system being flushed out,” Jan Wuestenfeld, an analyst at CryptoQuant wrote in a blog post.
Technical indicators show a positive upward trend for BTC, which means buyers could remain active on pullbacks.
Separately, in the bitcoin options market, open interest is near all-time highs last seen during March and April, which preceded a significant price drop.
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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis.
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