Bitcoin did run into some luck back then after tumbling so hard over the rocks with consistent price dips in a single day and rebounding above the $50k margin only to come back. It did set a new all-time high of $61.9k shortly after the crypto market did stabilize a bit. After setting another all-time high like it did when it touched the $57k margin, the cryptocurrency is back taking price dips where it dropped below $60k the other day, kind of confirming this unnatural pattern that Bitcoin moves so dramatically.
But according to the data presented on the on-chain data, it is believed that this unusual pattern is not going to end up in grave concern for investors over the worries of losing their money. It might be entirely possible that it is the beginning of a new bullish trend setting up with Bitcoin.
Due to this unusual performance that Bitcoin has put together in such a short time while scoring another all-time high, the funding rates have gone sky high, and the market is becoming extremely overcrowded, which is causing the price to pull back dramatically. But more and more capital ending up in the crypto market might actually be a good sign because it validates the fact that Bitcoin could catch momentum any time now.
The most common explanation for this can be found in the fact that when the prices are consistent and are breaking the high-end numbers as it happened with the $60k breakthrough, the interest of the investors begins to rise within the crypto market. This causes the permanent or long term traders to cash in this wonderful opportunity they have in front of them where the short term traders are forced to sell to be able to make some money.
The assets these short term traders sell fall into the laps of big corporate and financial institutions, thus depriving the small group of their chance at making more out of it. And when the market takes a little more momentum, and prices go significantly up, the big investors now make their move while the small traders are left with nothing and are forced to bring out the ones which they planned to hold onto for a while, thus flooding the market and bringing prices down.