There has been a dramatic retracing on the cryptocurrency market, with Bitcoin momentarily falling below the crucial $67,000 mark, leading to extensive liquidations. The liquidation of over $193 million in positions, the majority of which were long positions, suggests that the bullish momentum may be waning.
Following its recent surge, traders are beginning to cash out or face forced liquidations, indicating hesitancy on the part of Bitcoin, which is frequently referred to as digital gold. According to the liquidation heatmap, Bitcoin comes in second, with $46.75 million in liquidated positions, while Ethereum leads with $57.43 million.
This indicates that there are significant sell-offs occurring in both of the top assets. The fact that longs made up the majority of these liquidations shows how the market correction caught overly leveraged bulls off guard. The majority of liquidations on exchanges are attributed to Binance and OKX, indicating that traders on these platforms were placing extremely leveraged bets.
Bitcoin tested the descending trendline resistance from earlier this year, but it was unable to make a significant break above it, according to our analysis of the price chart. The price experienced a steep retracement after reaching $68,000, indicating a possible rejection. In the event that the price is unable to recover momentum, the 50 EMA and 100 EMA may indicate consolidation or a brief correction.
The next significant level of support for Bitcoin in this erratic climate is approximately $64,000, with additional downside risk if the bulls do not intervene quickly. If liquidation pressure increases, the market may be further dragged lower as the bearish sentiment continues to grow.
On the upside, Bitcoin must recover and hold above $67,000 in order to restore confidence in a bullish continuation. All things considered, the current condition of the market is dubious, with price retracements and liquidation spikes fostering an unstable atmosphere. Because of the ongoing volatility, investors should exercise caution.
