fxs_header_sponsor_anchor

Breaking: $600 million in leveraged positions liquidated as Bitcoin price crashes 5%

  • Bitcoin price dropped by $3,100 as it crashed to $56,713 in under an hour.
  • $600 million worth of leveraged longs were liquidated as a result of this sudden price dip.
  • A particular technical indicator forecasts more losses to come. 

Bitcoin price saw a momentary pause in its uptrend as it dropped by nearly 5% in less than an hour.

Bitcoin price wipes $600 million worth of leveraged positions

Bitcoin price surged 20% in the last five days, but the sudden $3,100 drop seen recently dragged it from $59,816 to $56,713 in a matter of minutes. The move triggered a significant number of stop-loss orders across the board and generated over $600,000,000 in liquidations.

The downswing comes shortly after the Momentum Reversal Indicator (MRI) flashed a sell signal on the 12-hour chart. The pessimistic setup forecasts a one-to-four candlestick correction that seems to be underway.

Additionally, the downward price action pushed Bitcoin below a crucial support level repressented by the parallel channel’s trendline, hinting at a continuation towards the $56,643 support level.

If the selling pressure persists, BTC price could even slide to $52,500.

BTC/USDT 12-hour chart

The uptrend’s resumption seems more likely if Bitcoin price invokes a decisive 12-hour candlestick close above $58,650, which coincides with the MRI’s State Trend Resistance.

This minor uptrend could set the stage to propel the pioneer cryptocurrency toward the $64,000 level. This climb will face significant resistance at $60,300 and $61,000, but breaching these levels will generate enough bullish momentum to catapult Bitcoin price toward its intended target.

Adding credence to this bullish thesis is Bitcoin’s monthly chart, which shows a sixth consecutive green candlestick in play. Such a setup was last observed in 2013’s bull run.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.