Altcoins and DeFi sell-off after Bitcoin’s 17.6% correction below $50K

In the early morning trading hours Bitcoin (BTC) price abruptly dropped by 17.65% which triggered a major downturn throughout the entire market.

Data from Cointelegraph Markets and TradingView shows that Bitcoin decreased from a high of $58,274 on Feb. 21 to a low of $47,622 during the early hours on Monday before buyers returned to lift BTC to its current value of $53,350.

Daily cryptocurrency market performance. Source: Coin360

Despite today’s $1.6 billion liquidation event, Bitcoin bulls remain optimistic about the future of the top cryptocurrency with key indicators suggesting that those buying today’s dip are likely to come out on top.

According to ExoAlpha Chief Investment Officer David Lifchitz, recent charts for Bitcoin looked overbought, signaling that a “15% correction could happen” as part of a normal market cycle before BTC attempts to break out to new highs.

Bitcoin went from $10,000 in October 2020 to almost $60,000 in just 4 months, indicating to Lifchitz that a “pause/mild-correction is definitely in the cards.”

Lifchitz said:

$50,000 looks like the first stop for a mild pullback but a second leg down could take it down to $40,000 while the $30,000 zone looks like the ultimate bottom should things turn ugly in the short term.”

BTC/USDT 4-hour chart. Source: TradingView

Recent money printing by central banks makes it less likely that BTC will drop as low as $30,000, according to Lifchitz, as Bitcoin is increasingly being seen as a hedge against currency devaluation by investors around the world.

Lifchitz also pointed out the recent moves in traditional assets such

Keep reading this article on Cointelegraph.com.

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