As we have witnessed in the past week Cryptocurrency Bull Markets are susceptible to sudden and steep declines, typically followed by rapid rebounds. These downturns are often triggered by intense selling in specific areas, creating a domino effect as other traders panic and sell. In this case, the previous ATH (all-time-high) price served as one of these critical areas. While spot trading remained unaffected, highly leveraged traders/investors suffered due to insufficient collateral to cover declining positions.

The recent ATH on Tuesday (Mar. 5th ) marked a significant "liquidation cascade," wiping out over $3 billion in open interest in Bitcoin. First hitting a new ATH of $69,324.58 and just 5 hours later a low for the day of $59,323.91, that's a 10,000.67 decline in just a matter of hours making it, the most substantial liquidation event in the past six months and we still haven’t fully recovered as the price is still below the 69,324.58 price line.

As I have said before we can not rely on historical events in this cycle. In previous ATH cycles, confidence was restored during price corrections, driven I believe mostly by the necessity of resetting funding rates. This time, I believe it's the endless demand from ETFs providing an additional layer of reassurance. Blackrock's IBIT witnessed a record-breaking $788 million in inflows on Tuesday (the 5th.), while the combined net inflows of ETFs reached $648 million their third-highest ever.

ETF trading volume surpassed $10 billion as traders capitalized on market volatility. Predictably, traders seized the opportunity to buy the dip, reaffirming our current position in bull market territory. Nevertheless, I always advise caution against over-leveraging positions, as it may lead to regrettable consequences...like the loss of your entire account.