Bitcoin price dropped 5% as the second day of losses is worth $ 2K for Ethereum.

Bitcoin (BTC) continued to fall in price on Wednesday amid warnings to liquidate excessively long positions in order to secure new profits.

1-hour candlestick chart BTC / USD (Bitstamp). Source: Tradingview

BTC price barely holds on to the $ 56,000 support

Cointelegraph Markets Pro and TradingView showed BTC / USD hit a new local low of $ 55,760 during Wednesday’s trading.

The second day of more significant losses for the pair came as the altcoins also began to reverse their previous gains as Ether (ETH) fell below $ 2,000.

A look at the trader’s behavior indicates that there are open long positions at the previous spot price, which indicates confidence that further upside potential is more likely than a new correction. Analyst Philbfilb believes these positions need to be liquidated before Bitcoin can make a meaningful attempt to hit new all-time highs.

The latest price movement has improved the structure of the market to some extent – $ 2 billion was liquidated in the last 24 hours, of which $ 600 million was liquidated in just one hour, according to Bybt.

“On March 23rd, there was a large influx of whale wallet in the amount of $ 55,172,” – monitoring service Whalemap. addedlooking at a possible floor.

“Let’s see how the price will react to this level. Usually the price bounces off such strong supports. “

BTC / USD chart showing clusters of whale orders. Source: Whalemap

Altcoins cancel strong start of the week

At the time of writing, high altcoin performances were under threat as Ether bounced back below its all-time high of $ 2,000 and escaped all-time highs.

1-hour candlestick chart ETH / USD (Bitstamp). Source: Tradingview

XRP and Polkadot’s DOT were the biggest losers in the top 10 cryptocurrencies by market cap, losing more than 10% in a day. All but one of the top 50 tokens, with the exception of stablecoins, were in the red.

Commented by popular trader Scott Melker accused overly sensitive traders.

“Bitcoin sneezes and loses several hundred dollars, nervous traders in panic sell their alternatives like jabronis, and bitcoin dominance grows. Good times, ”he tweeted.

“Remind me how delicate these windows are for trading alternative coins.”

The Alts are still leaning towards a sharp return to form in the summer, with Philbfilb even claiming the second incarnation of “Alt Season” is here.