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Bitcoin (BTC): Liquidations explode in the cryptocurrency market
The price of bitcoin fell sharply on Monday, erasing more than half of the gains made the previous week. The drop, which even took us back to $93,000 overnight, led to a wave of liquidations, particularly among leveraged long positions, leaving traders and analysts wondering what might come next for the flagship cryptocurrency. . We take stock this morning.
⚠️Bitcoin Plunges: Massive $550 Million Liquidation⚠️
On Monday, Bitcoin saw a 4.8% decline, falling just above $93,000. This fall led to massive liquidations, reaching $550 million, 70% of which came from long positions. These moves are often triggered by market makers who intentionally push prices down to liquidate leveraged positions.
Ryan McMillin, chief investment officer at Merkle Tree Capital, said two main catalysts were driving the decline: a "sell wall" just below the $100,000 psychological barrier and a buildup of long positions at leverage, too tempting for market makers.
Despite this decline, some analysts remain optimistic. McMillin predicts that the market could retest $100,000 before the end of the week, saying there is not much liquidity below $92,000, which could serve as a floor for this correction.
Other experts, like Nick Forster of Derive, see this drop as a normal correction in a bull market. He emphasizes that structural tailwinds for Bitcoin, such as evolving regulatory frameworks, remain intact.
