U.Today – The cryptocurrency market staged a dramatic rebound, temporarily falling below the key $67,000 level, leading to widespread liquidations. The liquidation of positions worth over $193 million, most of which are long positions, suggests that growth momentum may be waning.
Following its recent surge, investors are starting to cash out or face forced liquidation, indicating hesitancy on the part of Bitcoin, which is often referred to as digital gold. According to the liquidation heat map, Bitcoin is in second place with $46.75 million in liquidated positions and the leader with $57.43 million.
This means that both largest assets are subject to significant discounts. The fact that long positions accounted for the majority of these liquidations shows how the market correction caught over-leveraged bulls by surprise. Most of the exchange liquidations are attributed to Binance and OKX, indicating that investors on these platforms were placing high-leverage bets.
Bitcoin tested the resistance of the falling trend line from earlier this year, but – as our analysis of the price chart shows – it was unable to make a significant break above this line. The price dropped sharply after reaching $68,000, indicating a possible rejection. In case the price is unable to regain momentum, the 50 EMA and 100 EMA may indicate consolidation or a tiny correction.
The next significant support level for Bitcoin in this choppy climate is around $64,000, with additional risk of loss if bulls don’t intervene quickly. If liquidation pressure increases, the market could drag down as bearish sentiment continues to grow.
On the other hand, Bitcoin needs to recover and hold above $67,000 to restore confidence in the bullish continuation. In summary, the current market situation is questionable, with price retracements and liquidation spikes fostering an unstable atmosphere. Due to continued volatility, investors should exercise caution.
