Bitcoin (BTC<\/a>) rebounded to near $50,000 on Dec. 5 as traders continued to take stock of recent events.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a>\u00a0followed a less volatile BTC\/USD as it rose to $49,777 on Bitstamp before consolidating.<\/p>\n Fresh off a crash to $41,900<\/a> early Saturday, the pair stabilized as the market digested what was the latest giant deleveraging event to hit Bitcoin this year.<\/p>\n TLDR of what happened last night:<\/p>\n Open interest being built up for weeks + a regime of positive funding and low weekend liquidity (meaning thin order books) gave a perfect storm for a long liquidation cascade.<\/p>\n These forced sells executed into thin books, thus the drawdown.<\/p>\n \u2014 Will Clemente (@WClementeIII) December 4, 2021<\/a><\/p><\/blockquote>\n For some, however, there was every reason to stay cautious and not discount another sweep of long-term lows.<\/p>\n “We dip one more time. CT loses its shit and sell more. But it miraculously gets bought up,” Lex Moskovski, CIO of Moskovski Capital, predicted<\/a> in part of comments on Bitcoin’s prospects.<\/p>\n “Consolidation, a slow grind up.”<\/p><\/blockquote>\n That slow grind now has no shortage of significant support levels to recapture: $50,000 and the $1 trillion market cap zone just above $53,000, as well as various previous all-time high levels.<\/p>\n Fellow trader and analyst Rekt Capital meanwhile eyed the 200-day exponential moving average (EMA), a support line which had held since August but which was broken in Saturday’s dip, as a potential line in the sand.<\/p>\n #BTC<\/a> is just below the 200-day EMA right now$BTC<\/a> #Crypto<\/a> #Bitcoin<\/a> https:\/\/t.co\/ZOVwYBjatH<\/a> pic.twitter.com\/vOlJVSEM6p<\/a><\/p>\n \u2014 Rekt Capital (@rektcapital) December 5, 2021<\/a><\/p><\/blockquote>\n Late September, when BTC\/USD last traded at the $42,000 level, likewise saw a test of the 200EMA, and Rekt Capital noted that the severity of the dip still pales in comparison to previous ones from history.<\/p>\n “You survived the -84.5% BTC Bear Market. You survived the -63% $BTC crash in March 2020. You survived the -53% BTC crash in May 2021. You’ll survive this crash as well,” he added<\/a>.<\/p>\n A look at the status quo on derivatives markets showed funding rates<\/a> either neutral or slightly negative at the time of writing, a marked difference from just days ago.<\/p>\n Related:\u00a0Ethereum acts as a ‘hedge’ in Bitcoin price crash as ETH\/BTC hits 3-year high<\/a><\/em><\/strong><\/p>\n A significant chunk of open interest on futures was wiped out during deleveraging, and over $2.5 billion of crypto accounts were\u00a0liquidated.<\/p>\n The question for commentators now was whether enough of the froth had been removed to ensure a return to steady growth.<\/p>\n Open Interest flushed enough? pic.twitter.com\/jnvrqRPDot<\/a><\/p>\n \u2014 Nunya Bizniz (@Pladizow) December 4, 2021<\/a><\/p><\/blockquote>\n The weekly close meanwhile looked set to be Bitcoin’s lowest since the start of October.<\/p>\n <\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/e690bea4-5c9f-4541-8496-ae1e7a4488b2.png\"\/)
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Enough flush?<\/h2>\n
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