In a downward trend for Bitcoin In the cryptocurrency market, the recent drop in the price of Bitcoin has led to massive liquidation of long positions. This negative event, which has caused broader pessimism in the entire market, has highlighted the risks of leveraged trading and the inherent volatility of the cryptocurrency market.
Largest Bitcoin Long Liquidation in 2024
The recent drop in Bitcoin price appears to have been significant as the drop has led to significant losses in the liquidation of long positions according to recent data. Leveraged traders have seen their positions completely exhausted as a result of the drop in Bitcoin price, leading to a series of forced sell-offs. Filter.
Multi-skilled trader and expert, Younsi Dent subscriber According to the expert, the massive liquidation we saw on Monday is the largest since the beginning of 2024.
Yunsi noted that traders saw their positions erased after Bitcoin saw a massive -30% drop from its previous short-term peak and a rapid -16% drop in the past 24 hours amid the global stock market crash. Specifically, rising interest rates in Japan led to the crash, which had an impact on other major markets such as US Stock MarketWhich led to huge losses in the cryptocurrency sector.
The data shared by the expert revealed that the sudden move resulted in the liquidation of nearly 5,500 long Bitcoin positions over the course of the day. Based on the hourly closing price, the liquidation is estimated to be worth around $303 million.
Younes also highlighted a sharp decline in Bitcoin Open Interest (OI) After the recent drop. Major cryptocurrency exchanges like Binance, Bybit, and OKX, which account for the majority of open interest, have seen a sharp drop to nearly half of the total interest.
At the time of publication, Younes claimed that BitcoinThe price range of ‘s has been trending upwards and finding support between the January high at $48,900 and the February consolidation range at $51,000 and $52,000. However, if the price drops below these support levels, it could put the price realized for long-term holders (LTH) at risk.
despite of BitcoinWhile the bearish case for ‘s appears strong, there is optimism about an imminent recovery, as several bullish indicators have been cited on the asset’s chart such as the bullish flag pattern.
Bitcoin remains the main focus among traders.
Bitcoin may have fallen sharply in value over the past few days, but the crypto asset remains the primary focus for traders in this turbulent period according to Data From the renowned market intelligence company Santiment.
Santiment revealed that while BTC and Ethereum Cryptocurrencies have gained general attention within the cryptocurrency market, but other more speculative coins that are overlooked by the public are seeing a rise as the market recovers. Accordingly, the platform advised investors to buy the dip of these speculative coins, indicating their ability to make significant gains during times like this.
Featured image from LinkedIn, chart from Tradingview.com