Bitcoin Price Drops 10% Liquidating Over $700 Million Long Positions
Bitcoin drops 11% as long positions get liquidated. Are we in for more downside?
Bit Key Takeaways
- Bitcoin correction leads to $666 million in trader losses
- Inflation fears drive over 10% BTC price drop
- Record high of $73,800 signals potential market reversal
Bitcoin‘s price underwent a significant correction, plunging to a multi-week low below $66,000 and resulting in over $700 million in losses for traders optimistic about its continued rise, all within 24 hours.
This downturn follows a recent peak of $73,750, driven by excitement over spot Bitcoin exchange-traded funds (ETFs). The correction, dropping the price by over 10%, was largely because of inflation fears, confirmed by recent macroeconomic indicators.
Bitcoin (BTC) Long Positions Liquidated
At the time of writing (March 15 2024), Bitcoin’s price has slightly recovered to $66,536. The market dip particularly hit long traders hard, with over $700 million in liquidations from yesterday, compared to short traders’ $223 million in losses, according to CoinGlass data.
Bitcoin traders faced $274 million in losses, with the largest single liquidation being a $13 million long position on the OKX exchange. This could cause a long squeeze, negatively affecting Bitcoin’s price further.
Bitcoin (BTC) Price Analysis
On March 13, 2024, Bitcoin set a record high of $73,800. Analysis of its price trends since late January shows a five-wave pattern, suggesting that this large uptrend is complete. On March 14, we saw the start of a descending move that led to a breakout below the ascending support.
Since its last rise beginning on February 26, an ascending triangle has emerged, with its resistance level being tested on March 15. This formation could be either an ending diagonal or a rising wedge, indicative of a nearing end to the upward trend and the possibility of an impending reversal.
This ending formation culminated in a long-lasting uptrend from November 2022. We could be in for a significant correction if Bitcoin continues to fall. The first major stopping point would be around $52,600. In the short term, however, there could be some sideways movement as the sellers enter the market.
The four-hour chart RSI is currently at 34%, close to the oversold zone. Considering the amount of decrease in one go a minor recovery could happen, but the overall structure looks it could turn bearish.
For this larger and lasting decline to happen, there first needs to be a lower high and a lower low. After this development Bitcoin’s price would signal the starting downtrend.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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