Kyle du Plessis, a renowned crypto market analyst, has highlighted that Bitcoin fell by nearly $10,000 in one day during a flash to the downside. Plessis noted that the price drop led to mass liquidation, even though most cryptocurrencies are making impressive recoveries.
In a recently uploaded video, the analyst highlighted around $1 billion in liquidations on the long side, marking the largest liquidation cascade in the last six months. Plessis noted that funding rates increased massively, while most altcoins continue to exist in the discount levels from the daily charts’ perspective.
According to Plessis, the price dip could represent a buying opportunity for most altcoins, especially with an altcoin season in view. He showed that many altcoins are recovering impressively in the lower time frames.
Crucially, Plessis observed a reset in the Bitcoin Fear and Greed Index. He highlighted that the metric reached 90%, marking the highest grade on its chart. Although the index suggests an overbought condition for the digital asset, Plessis showed that it usually sustains a rally whenever it happens. The only time it failed to maintain a rally was when China banned Bitcoin, leading to a market crash in the last bull cycle.
Supporting his analysis, Plessis showed that the recent sell-off caused the Fear and Greed Index to reset lower to around 70%, creating room for more potential rallies. He explained that the market is emotional, especially with those on leverage, whenever prices start testing all-time highs (ATH). According to Plessis, small dips create extreme swings in traders’ emotional states. Hence, it is essential to curtail listening to hype and stick to one’s plans.
Bitcoin traded for $66,706 at the time of writing, having recovered from a dip below $60,000 in the last 24 hours, according to data from TradingView. Bullish momentum remains significant for the flagship crypto ahead of the upcoming Bitcoin halving event expected to happen later this year.
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