Crypto firm Galaxy released a research note this week assessing the dip in crypto on Tuesday, March 5, and what it means for the bull market.
In a note from the firm’s research team, they said BTC is “still not for rookies” after the premier cryptocurrency fell following the new all-time high earlier in the week.
“The drawdown was compounded by significant long liquidations — $400m between 2-3 pm ET alone,” noted the analysts. “The last 24h (as of 7 am ET Wednesday) saw more than $800m in long liquidations (and more than $1bn total including short liqs) across crypto futures exchanges.”
With bitcoin going on to reach further new all-time highs, Galaxy said volatility is back and is likely to remain “as we scale the wall of worry.”
“Some old coins did revive yesterday [March 5] and probably sell, possibly helping to create the intraday top,” said the analysts. “Blockchain data suggests that a large chunk of coins mined all the way back in 2010 came online yesterday and moved onchain – we assume these were sells. Everyone has a price, and if this was one person and they did sell, they probably wished they’d sold in 2021 at these levels and decided to take
money off the table now that we’re back.”
However, when the firm assessed data from Coin Days Destroyed, they noted that old coins coming online tend to mark either bullish peaks or desperate bottoms.
Nevertheless, “make no mistake, we will climb a wall of worry as this bull market continues,” declared the analysts, who believe the bitcoin rise is “still just getting started.
“Have conviction, take your coins into self-custody if you can, and enjoy the greatest game the markets have ever seen,” they concluded.
