Bitcoin (BTC), the cryptocurrency market’s most valuable asset, fell sharply in early Asian trading on Thursday after the price dropped to $72,600.
Takeaways from the conference:
- Bitcoin dropped 4.5% on Wednesday from its seven-week high price of $76,050. It now stands at $72,620.
- Nearly $935 billion of cryptocurrency traders who were over-leveraged have been liquidated in the past day.
- Bitcoin traders say it needs to stay above $70,000 in order to avoid further declines towards $65,000 and lower.
Bitcoin prices fall to 6-week Lows of Below $73,000
BTC/USD dropped to as low as $75,620 on Thursday. The pair reversed gains that had been made since the 13th of April after reports indicated that US forces launched another wave military attacks against Iran.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
It was also accompanied by significant falls in the top-cap currencies. wiping out more than $80 billion Crypto market activity over the last 24-hours
Related: Bitcoin falls further as BTC miners pivot to AI, pro-crypto legislation stalls
Derivates market also suffered the same fate. Bitcoin was responsible for 348.5 million of this total. With $228.5 Million in liquidations of long positions, Ether (ETH), followed.
As shown below, the total loss on the short- and long-term positions was $935.6 Million.
Source: CoinGlass (screenshot) Source: CoinGlass
Hyperliquid was the site with the largest liquidation, closing a long BTC-USD position of $15.34 millions.
CoinGlass: Additional Data showed All exchanges have seen a small drop in the open interest of Bitcoin futures (OI). This decline was most pronounced at the Chicago Mercantile Exchange (CME) and BingX where Bitcoin OI fell by respectively 9.8% and 9% in the past 24 hours.
Although futures shorts and longs are always equal, a declining OI indicates reduced market leverage, which is often interpreted as a bearish mood. As an example, between January 14 and February 6, a decrease of 30% in OI was accompanied by 38% in the price of BTC.
The US spot ETFs are also available. continue to post heavy outflowsThe’indicating waning institutional interest. Eight consecutive days have seen outflows of $2.6 billion from these ETFs. On Wednesday, $733 million was the highest net withdrawal recorded since January 29.
Spot Bitcoin ETF Flows Chart Source: SoSoValue
Cointelegraph reportedLast week global Bitcoin investments products saw outflows amounting to $1.3 billion, which added further pressure on BTC.
Bitcoin is no longer able to defend itself against $70,000
Bitcoin lost the 4% in value over the last 24-hours. crucial $75,000 supportAs the bears gained speed,
On the downside, traders are watching the key support levels. These include the simple moving average of 100 days (SMA) which sits at $73,000 as well as the demand zone above $70,000.
“Renewed US-Iran fighting overnight sent us lower with mass liquidations,” Analyst Nicrypto said Additions to a Friday X posting:
“We have fallen well below the previous $75K support zone & are now at the critical $73K support.”
MN Capital founder Michael van de Poppe referred Bitcoin’s recent selloff is a “standard approach” The final day of a month is a typical example. “where markets correct as rebalancing takes place among asset managers.”
Analyst said: “Bitcoin showing weakness isn’t a recipe for a new low,” If it falls below the support range of $71,400 – 73,400 as indicated in the graph below.
“This is my last stance of an important support zone; otherwise, I’d expect lower $60Ks to be tested for support.”
BTC/USD chart daily. Source: Michael van de Poppe
As shown in the chart below, a daily candlestick below $70,000 can trigger another selling episode towards the target of the inverted V pattern at $65,000. It would be an 11.4% decrease from current prices.
BTC/USD 1-day chart. Source: Cointelegraph/TradingView
Cointelegraph reportedBTC, if it loses support between $74,000 and $76k, may fall to the line of support around $70500. This is expected to bring in buyers.
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Source: cointelegraph.com
