- Bitcoin price free falls, bringing the market value down by 25% on the month at $21,000 as the bears have forged a weekend sell-off.
- $679 million worth of longs have been liquidated in the last 24 hours.
- Invalidation of the bearish thesis is a breach above.
Bitcoin price is witnessing a devastating crash, wiping out liquidity levels as far back as 2020. Key levels have been defined to gain perspective on BTC's potential landing grounds.
Bitcoin price in a free fall
Bitcoin price has experienced a jaw-dropping decline as the peer-to-peer digital currency breached new yearly lows at $15,600. As investors jump ship, traders are forced to ask the question, how far can Bitcoin truly fall?
Bitcoin price currently auctions at $15,894. The massive decline saw 679,000,000 dollars worth of long liquidations in the last 24 hours. BTC now auctions in levels last touched in 2020 before its infamous bullrun. The Relative Strength Index continues to descend into oversold levels as retail bears have now joined the trend.
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Crypto Total Liquidations
It is worth noting that the Volume Profile Index shows fewer transactions in the current sell-off than in the US midterm elections liquidation. This could be a subtle cue that the downtrend is losing steam. Still, if the downtrend is not over, the next targets would be 2020 liquidity levels between $15,000 and potentially $14,500.
BTCUSDT 1-Hour Chart
Invalidation of the bearish thesis may rise if the bulls can breach the $17,900 swing high. In doing so, a rally toward $21,500 could occur. Such a move would result in a 35% increase from the current Bitcoin price.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
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