#bitcoinprice Breaches $57,000 — Crash Ahead?

Bitcoin Breaches Crucial $57,000 Support, Triggers $100 Million in Liquidations

On September 4, 2024, Bitcoin ($BTC ), the world’s largest cryptocurrency, dipped below its critical support level of $57,000, hitting a low of $55,670, according to CoinMarketCap data. However, BTC quickly rebounded, climbing back to nearly $56,800.

$100 Million in Liquidations

This sharp price swing led to over $100 million in liquidations across both long and short positions, with the majority coming from long positions. On-chain analytics firm CoinGlass reported that out of the $100 million liquidated, $91.35 million were from long positions, while short sellers faced $8.57 million in liquidations.

Despite the quick recovery from $55,670 to $56,800, it appears BTC is entering a phase where short sellers are gaining the upper hand, potentially leading to further long position liquidations.

Bitcoin Technical Analysis and Future Levels

Expert technical analysis suggests that BTC is turning bearish, with a strong likelihood of falling to the $54,000 level. The recent price drop not only broke the crucial $57,000 support but also ended a week-long consolidation near that area—a bearish signal.

This marks the first time since August 8, 2024, that BTC has fallen below $56,000. Despite the steep decline and significant support breakdown, technical indicators such as the Relative Strength Index (RSI) and Stochastic remain neutral, according to CryptoQuant data.

Key Liquidation Zones

Current key liquidation zones are near $56,270 on the lower end and $57,130 on the upper end, where intraday traders are heavily leveraged, as per CoinGlass’s Bitcoin exchange liquidation map.

If bearish sentiment continues and BTC drops to $56,270, nearly $260 million in long positions could be liquidated. A rise to $57,130 could wipe out $215 million in short positions. Currently, BTC is near $56,601, down over 5% in 24 hours, with a 4% drop in open interest, signaling major liquidations after breaching key support.

Source - coinpedia.org