The price of Bitcoin (BTC) fell 17.65% in the early morning hours, causing a sharp drop in the overall market.

Data from Cointelegraph Markets and TradingView show that Bitcoin went from a high of $58,274 on the 21st. February fell to $47,622 in the early hours of Monday morning before buyers returned to take the BTC to its current value of $53,350.

Daily indicators for the cryptocurrency market. Source: room360

Despite Bitcoin’s $1.6 billion liquidation today, the bulls remain optimistic about the future of the leading cryptocurrency, with key indicators suggesting that those who buy today’s drop are likely to prevail.

According to David Lifchitz, Chief Investment Officer at ExoAlpha, Bitcoin’s latest charts appeared overbought, suggesting that a 15% correction to the normal market cycle could occur before BTC attempts to break new highs.

Bitcoin has gone from $10,000 in October 2020 to nearly $60,000 in just 4 months, which indicates to Lifchitz that a breakup/slight correction is definitely coming.

Mr. Leafchitz said:

50,000 seems to be the first stop for a slight pullback, but the second phase could go up to $40,000, while the $30,000 zone seems to be the ultimate bottom if things go wrong in the short term.BTC/USDT 4-hour chart. Source : TradingView

The recent printing of currency by central banks reduces the chances of BTC falling to $30,000, Lifchitz said, as Bitcoins are increasingly seen as a hedge against currency devaluation by investors around the world.

Lifchitz also noted that recent moves in traditional assets, such as the yield on 10-year U.S. Treasury bonds, could trigger a decline in Bitcoins as part of a general move to deleverage asset classes, but only time will tell how this will play out.

Rising yields put pressure on equities

The traditional markets presented themselves on the 22nd. February was a mixed month as the recent rise in government bond yields increased expectations of higher inflation and put additional pressure on equity markets.

The Dow was able to overcome the pressure at the start of the day and closed the day 0.09% higher, while the S&P 500 and NASDAQ traded in the red all day and ended the day down 0.77% and 2.46% respectively.

Commodities were a positive on the markets Monday, as crude oil rose 4.14% to $61.69.  Gold rose 1.68% and closed the day at $1,807.

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Despite the market slowdown in the cryptocurrency community, several token prices rose on Monday as positive developments helped them rise above negative sentiment.

The Crypto.com Coin (CRO), whose price exploded by more than 63%, reaching a new record of $0.2748 in the first few hours of trading, has been the star attraction of the last 24 hours.

Other notable indicators are NEM (XEM), up 16.05%, and Solana (SOL), up 20.54%.

Day ticketBTC/USD. Source: room360

The total market capitalization of cryptocurrents is currently $1.63 trillion, with Bitcoin leading the way with 61.2%.

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