The toll of Bitcoin (BTC) abruptly barbarous by nearly half-dozen% in less than four hours as the new weekly candle opened on March fifteen.

Three factors contributed to the weakening momentum of Bitcoin, namely a new weekly open, high funding rates, and stablecoin inflows primarily driving the marketplace upward.

New weekly candle and a reset pullback

When a new weekly candle opens, Bitcoin typically sees large volatility considering the trend on Monday could dictate how Bitcoin performs throughout the rest of the calendar week.

BTC/USD 1-day nautical chart with key levels. Source: TradingView/Rekt Capital

Over the last few hours, every bit pseudonymous trader "Rekt Capital" noted, Bitcoin saw an overextended pullback. Equally a event, the trader said BTC could be in the process of seeing a "volatile reset." The trader said:

"BTC has pulled back towards the red area and even overextending beneath information technology — for now. The mean solar day is still young so price could still resolve itself relative to this red boxed area and turn information technology into support. Technically, $BTC is in the process of a volatile retest."

If Bitcoin fails to rebound from the $55,000 area, the trader warned that a steep correction to the $46,700 support level becomes a possibility.

Futures market was very overheated

When the price of Bitcoin began to drop, the futures market funding rate of BTC was hovering higher up 0.1% across major exchanges.

This indicates that the overwhelming bulk of the market was longing or ownership Bitcoin, making information technology an overcrowded merchandise.

BTC long/brusk liquidations. Source: Bybt

According to data from Bybt, 194,541 traders were liquidated in the past 24 hours for a total of roughly $1.83 billion, the highest since Feb. 21. The futures market saw cascading liquidations every bit the market was extremely overheated.

This wave of liquidations eventually led Bitcoin to drop below $57,000, which Cointelegraph Markets annotator Michaël van de Poppe identified as a primal support level. He said:

"Bitcoin barely property on to this critical level here. Needed for upwardly continuation, otherwise, price drops back into the range."

Large commutation deposits and stablecoin inflows

Earlier the drib occurred, on-chain data analytics platform CryptoQuant pointed out large BTC deposits into Gemini.

Gemini is a leading Bitcoin exchange in the United States alongside Coinbase and is often regarded as a "whale exchange."

Bitcoin all exchanges inflow hateful. Source: CryptoQuant

Ki Young Ju, CEO of CryptoQuant, said:

"This 18k $BTC eolith is legit every bit it was a transaction between user deposit wallets and Gemini hot wallet. All Exchanges Arrival Mean is skyrocketed due to this deposit. Don't overleverage if you're in a long position."

In improver to the selling pressure from whales, the recent Bitcoin rally being led past stablecoin inflows into exchanges was some other bearish sign.

Ju noted that the rally was catalyzed by sidelined capital held in stablecoins rather than institutions in the United states of america. He explained:

"Coinbase Premium Index was always significantly high when $BTC price breaking 20k, 30k, 40k, and 50k. It was significantly negative when the toll breaking 60k. This 60k balderdash-run is not U.s.a. establishment-driven, information technology all came from stablecoins."