Bitcoin price has plummeted 7% in the past 24 hours, a move that has led to the liquidation of over $ 185 million of Long orders. This sharp decline occurred after BTC closed the weekly candle which many traders expected.
91 million USD of Long order were liquidated in 1 hour
A few hours before the weekly candle closed, data from Datamish.com showed that Long contracts worth $ 185 million were liquidated – from 267 positions.
According to data from research unit Skew, cryptocurrency exchange derivatives exchange BitMEX alone saw a liquidation of about $ 91 million in an hour.
When the price of Bitcoin dropped from $ 8,633 to $ 8,160 in less than 45 minutes, a series of buying liquidations followed, which caused the entire market to pullback significantly in a short time.
Atlcoin coins like Ethereum (ETH) recorded a massive sell-off at the same time. ETH is down 12% on the day, from $ 237.9 to $ 211.25.
Why is Bitcoin price pullback so strong?
The weekly close of the Bitcoin candle on March 8 was expected by many traders. Since Bitcoin failed before the $ 9,200 resistance level, technical analysts have considered the possibility of further price drops.
Since March 1, the price of Bitcoin has shown a decrease in trading volume and a number of open contracts, which often signals a potential short-term price drop after a temporary price boom.
Well-known crypto trader DonAlt says that the weekly close below $ 8,750 of Bitcoin shows that the coin is able to retest the discounts on all major time frames, including monthly, weekly, 3 days and daily.
He said:
“As far as possible. Tighten the risk a bit, if the price repeatedly finds $ 9,500, I think it will go higher, not lower. The weekly close of the candle today will be very interesting, if it closes below $ 8,750, there will be retesting tests on the monthly, weekly, 3-day and daily time frames. "
Short-term perspective
Prior to the day's big slump, analysts like Adaptive Fund's Nik Yaremchuk said that the emergence of deep intra-regional liquidity between $ 7,000 would strengthen the expansion to that region.
As of February 26, Yaremchuk warned that a reduction to $ 7,500 in the medium term is possible, with just enough TA parameters.
He said:
"Honestly, I'm waiting for $ 8,000 to 8,500 USD. $ 7,500 is perfect. Enough TA parameters for this. Despite some external factors, for example, high expectations about halving. Of course, there will be growth, Bitcoin will certainly increase, but this is not perfect, this is the market. "
With relatively low volume and a serious correction in the altcoin market, the recovery of market sentiment will need a strong reaction from the buyers.
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to CryptoSlate
Translated by ToiYeuBitcoin