Bitcoin (BTC), the price has yet to recapture the USD 40,000 level and traders expecting a quick resumption of the uptrend may have been caught off guard by the recent downturn. This could have resulted in the liquidation of approx $ 500 million of cryptocurrency futures positions in the past 24 hours.

Over-leveraged positions provide the necessary ammo during the uptrend, but they become a risk when the trend hits a tipping point.

When markets fall, leveraged long positions quickly turn into a loss, resulting in broker margin calls. When the margin requirements are not met, the brokers dump the positions at market price leading to a sharp dip.

Therefore, data containing a reduction in leveraged Bitcoin positions in recent days is a positive sign as it reduces the risk of cascading liquidations.

Crypto market data daily view. Source: Coin360

While a sharp drop is usually avoided if the markets are not overused, persistent buying is needed to maintain the higher levels. If not, the price will continue to gradually correct.

Grayscale Investments has been one of the top buyers in recent months, but they now have a new one competitor, Osprey Funds, which began trading in the over-the-counter market on January 15 under the ticker symbol OBTC. The company offers a competitive management fee structure compared to grayscale.

This is a positive sign for crypto markets as if both companies attract institutional investors, buying could resume and Bitcoin could change course to pursue new highs.

While Bitcoin gets stuck in a range, certain altcoins are hard at work. Let’s take a look at the charts of the top 5 cryptocurrencies that will be preferred by the bulls in the coming days.