Bitcoin (BTC) Drops to $9,262 on BitMEX as $25M in Longs Liquidated in Two Waves

News
Wed, 06/24/2020 - 14:33
Vladislav Sopov
The Bitcoin (BTC) market has experienced two waves of massive long liquidations on BitMEX Bitcoin (BTC) derivatives exchanges. Will it continue to free-fall?
Cover image via stock.adobe.com
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The Bitcoin (BTC) price has been pushed to $9,262 by two waves of massive long liquidations on the world-leading Bitcoin (BTC) derivatives trading platform BitMEX.

Two black spots for Bitcoin (BTC) price

According to trading statistics, the Bitcoin (BTC) price plummeted today from $9,668 to $9,262. The first liquidation occurred between 08:15 AM and 09:00 AM (UTC), while the second one took place in one ten-minute candle at 11:30 AM.

Image by Twitter

This plunge was followed by two liquidations of long positions on the BitMEX derivatives exchange. In the first wave, $6.5M in longs were liquidated while $18.6M were liquidated in the second one.

At press time, the Bitcoin (BTC) price has recovered slightly from its morning drop. It is changing hands at $9,370 on major spot exchanges.

Traders and analysts have already pointed out the levels that are crucial for Bitcoin (BTC) bulls to hold. Mostly, they aren't treating this move as a sign of bearish control over the price of the flagship cryptocurrency.

Bitcoin (BTC) price managed to stay above crucial levels of support

Various traders believe that it hasn't left the lower border of the channel it has remained in since the end of its 'Bart Simpson' fake rally above $10,000. Anonymous trader Jack Sparrow identified $9,138 as the crucial level for Bitcoin (BTC) bulls.

It is this level where Bitcoin (BTC) started its ugliest free-fall on Black Thursday. So, until it leaves this range, the Bitcoin (BTC) price direction is still under the control of bulls.

Seasoned trader and analyst Scott Melker supposes that $9,260 is much more crucial to hold. If it can, the price of the flagship cryptocurrency may return to above $9,500 very soon.

The next support level is located at the 50-day moving average near $9,552. Holding above this level would mean another rally.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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