Bitcoin prices ruled in a narrow range after sell-off witnessed on Monday seemed to have lessened. As per Norwegian blockchain analytics firm Arcane Research, Monday's fall in bitcoin prices led to around $1.6 billion in derivatives bets being liquidated, second only to the record level that occurred on February 22.
After staying in the mid-$50,000 range for the most of Tuesday, Bitcoin on Coindesk is seen to trade at $55709.36, up 0.14% and commanded a market cap of $1.04 trillion.
In its weekly newsletter, Arcane mentioned that on February 22, the relative price decline was larger than on this Monday. "The extreme liquidation levels this Monday then suggests that this time around even more traders applied higher degrees of leverage in their trades."
As per the blockchain data, bitcoin found strong support at $54,000. The largest cryptocurrency on March 13, 2021 scaled to its all time high price of over $61,000. And such price levels seem to alleviate some of the analysts' concerns that market might be establishing a "double top". Double tops are highly bearish price chart pattern.