Although Bitcoin successfully broke the "September curse" that it is almost certain to fall in September, it hit a high of $66,000 again and continued to fall. It fell to as low as $62,850 at around 7:30 earlier. CryptoQuant analysts believe that this was caused by long squeeze.

Bitcoin peaked at $66,000 in the early morning of yesterday (30th), but continued to fall in the next 24 hours. At around 7:30 this morning, the price fell to $62,850. As of writing, it is reported at $63,410, down 3.05% in the past 24 hours, and almost all of the gains in the past week have been lost.

In addition, since September 20, Bitcoin has hit $62,400 several times. Analysts speculate that many investors set their stop losses at this price, so it is not ruled out that Bitcoin may further retest this level. If the price quickly breaks below and then rebounds quickly, it may provide support for subsequent increases.

As for Ethereum, it hit a low of $2,574 this morning, but the overall decline was smaller than that of Bitcoin, and it had rebounded to above $2,600 before press time.

The entire network has a liquidation of 223 million US dollars in the past 24 hours

According to Coinglass data, in the past 24 hours, the total amount of cryptocurrency liquidations reached US$223 million, of which US$183 million were long orders, accounting for the majority, and a total of more than 77,000 people were liquidated.

CryptoQuant: Open interest exceeds $19.1 billion, long squeeze

As for the reasons for the sharp drop in Bitcoin, analysts at CryptoQuant pointed out to TBlock that speculation in the cryptocurrency futures market is becoming increasingly active, and the current open interest has reached about $19.1 billion. Since March 2024, open interest has only exceeded $18 billion six times, and each time it was accompanied by a price drop.

Bitcoin perpetual contract market data shows that a long squeeze has occurred in recent hours as long liquidations surge.

A long squeeze occurs when the price of an asset such as Bitcoin falls, forcing traders holding leveraged long positions to either sell or face liquidation to meet margin requirements.

This selling pressure could push prices further down, triggering additional margin calls and forced liquidations, amplifying downward momentum.

Is the rise above $66,000 a lure to buy?

Blockchain analysis platform Santiment also reminded over the weekend that if you are expecting Bitcoin to hit a record high, you may have to wait until people lower their expectations. Currently, the number of bullish views far exceeds the bearish views, but historically, the market always moves in the opposite direction of public expectations.