Bitcoin’s wild price action causes $1 billion in liquidations as overhead pressure intensifies, eyes $30,000
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Bitcoin has been exceptionally volatile in the bull market. Hence, the massive liquidations over the weekend. The price plummeted from highs close to

  • Bitcoin liquidations soar as the price plunges from levels above $40,000 to an intraday low of $33,344.
  • Bitcoin may resume the uptrend if it closes the day above $35,000.
  • Declines to $30,000 and $27,500 are not out of the picture as Bitcoin is yet to find a local low.
  • Bitcoin liquidations soar as the price plunges from levels above $40,000 to an intraday low of $33,344.
  • Bitcoin liquidations soar as the price plunges from levels above $40,000 to an intraday low of $33,344.
  • Bitcoin may resume the uptrend if it closes the day above $35,000.
  • Bitcoin may resume the uptrend if it closes the day above $35,000.
  • Declines to $30,000 and $27,500 are not out of the picture as Bitcoin is yet to find a local low.
  • Declines to $30,000 and $27,500 are not out of the picture as Bitcoin is yet to find a local low.

    Bitcoin has been exceptionally volatile in the bull market. Hence, the massive liquidations over the weekend. The price plummeted from highs close to $42,000 and is yet to confirm formidable support. At the same time, the breakdown saw liquidations skyrocket on Bitfinex and other derivatives trading platforms.

    price plummeted from highs close to $42,000 breakdown Bitfinex

    Bitcoin liquidations surge as the price plunges toward $32,000

    According to bybt, a cryptocurrency price tracking platform, over the last 24 hours, nearly 234,000 traders have been liquidated. Intriguingly, the largest liquidation order occurred on BitMEX-BTC with a value of $10 million. Binance leads in the number of Bitcoin longs liquidations at $632 million at the time of writing, followed by Huobi at $378 million.

    Bitcoin total liquidations by bybt

    Bitcoin total liquidations by bybtBitcoin total liquidations by bybt

    Bitcoin total liquidations by bybt

    Bitcoin total liquidations by bybt

    Bitcoin hunts for a short-term bottom

    Bitcoin’s slump from levels above $40,000 caught many traders unawares. Massive Bitcoin long positions have been liquidated, with the price testing an intraday low of $33,344. At the time of writing, the flagship cryptocurrency has recovered to hold marginally above $35,000. However, it is not clear if a bottom is in already.

    From a technical perspective, the 4-hour candlestick close will determine where Bitcoin goes from here. For instance, if support above the 50 Simple Moving Average is reclaimed, Bitcoin may swing past $38,000 in readiness for another leg up beyond $40,000.

    technical perspective

    On the other hand, holding above $35,000 will also sustain the price in the bulls’ hands and perhaps call for more buy orders as Bitcoin pushes past the coveted $40,000.

    BTC/USD 4-hour chart

    BTC/USD 4-hour chartBTC/USD 4-hour chart

    BTC/USD 4-hour chart

    BTC/USD 4-hour chart

    Some analysts believe that it is too early to tell if Bitcoin has reached a short term bottom to support a formidable recovery. Bitcoin holding above $35,000 would be a critical bullish signal. On the other hand, the daily supports are highlighted at $32,500, $30,000, and $27,500 in that order.

    BTC/USD daily chart

    BTC/USD daily chartBTC/USD daily chart

    BTC/USD daily chart

    BTC/USD daily chart

    A sell signal on the daily chart as presented by the TD Sequential indicator suggests that overhead pressure may continue to rise in the near-term. The call to sell manifested in the form of a green nine candlestick anticipating a one to four three-day candlesticks correction.

    A red two candlestick trading below a preceding red one candle could serve as confirmation that Cardano is poised to drop further.

    BTC/USD daily chart

    BTC/USD daily chartBTC/USD daily chart

    BTC/USD daily chart

    BTC/USD daily chart

    It is worth mentioning that a dragonfly candle on the hourly chart was invalidated at $39,000. Bitcoin dived under $34,000 and almost tested $33,333. For now, holding above $36,000 and the 200 SMA on the 1-hour chart may save BTC from falling further and perhaps kick start the reversal to $40,000.

    chart

    BTC/USD 4-hour chart

    BTC/USD 4-hour chartBTC/USD 4-hour chart

    BTC/USD 4-hour chart

    BTC/USD 4-hour chart

    Bitcoin may not have bottomed on the downside, hence the possibility of retesting the support areas at $32,500, $30,000, and $27,500 in the short term. A daily close under the crucial $35,000 and the 200 SMA is likely to call for more sell orders, increasing the possibility of another breakdown.

    Bitcoin

    From: FXSTREET