Bitcoin (BTC) fell 8% from Tuesday’s high of $71,300 to a 9-week low of $65,360 amid heightened geopolitical risks surrounding the US-Iran war.
Important Points:
- Bitcoin fell to $65,000 on Wednesday amid a market correction, wiping out $774 million in the long run.
- Bitcoin needs to hold $60,000 as support to avoid a deep correction in BTC price, traders say.
Bitcoin erases long run to $65,000
Data displayed from TradingView. BTC’s new price is a low of $65,362. On Bitstamp, lowest since March 29 as sellers remain in control.
BTC/USD Daily Chart. Source: Cointelegraph/Trading View
This widened the divergence to 21% from the local high of $82,800 and was accompanied by a massive liquidation in the derivatives market.
Related: Bitcoin’s $224K ‘Fair Value’ May Emerge If Sovereign Debt Concerns Deepen: Bitwise
More than $1.58 billion in long positions were liquidated, with bitcoin holdings totaling $774.2 million. Ether (ETH) followed with a long liquidation of $440 million.
Across the board, a total of $1.83 billion was wiped from the market in short and long positions, marking the biggest liquidation since February 6, when the price of BTC fell below $60,000 to its multi-year low.
Total Crypto Liquidations Across All Exchanges Source: CoinGlass
“This marks one of the biggest one-day events in recent months,” Cryptobanter analysts said In an ex-post on Wednesday.
Pseudonymous analyst Byzantine General shared Valu data, which tracks liquidations from four major crypto exchanges: Binance, Bybit, OKX and Derbit, is saying:
“Highest $BTC long liquidation event since the infamous Black Swan event of October 10th.”
Total Bitcoin Liquidations. Source: X/Byzantine General
Fellow analyst DonaX₿τ pointed out That the $1.5 billion in long liquidations recorded today was lower than the $1.6 billion posted during the Covid crash in 2020, added:
“This industry is growing.”
Meanwhile, Bitcoin supply on Binance, the world’s largest crypto exchange by trading volume, has hit a three-month high of 659,000 BTC.
This “indicates the possibility of increased selling pressure in the market, especially if it coincides with falling prices or increasing volatility,” crypto-quant analyst Arab China said. said In a QuickTake note on Wednesday, added:
“Increased supply on exchanges could increase price volatility and sell pressure, especially if inflows continue in the coming period.”
Supply of Bitcoin on Binance. Source: Cryptoquant
As Cointelegraph Reported,Bitcoin is now in a new distribution phase fueled by increased inflows to exchanges amid extreme fear.
$60,000 is now Bitcoin’s last line of defense.
BTC dropped to around $65,000, leading traders to question where Bitcoin is likely to find support.
Bitcoin is in an “interesting zone” below $66,000 with bulls “looking at the $61K area for support with the 200-Week MA,” MN Capital founder Michael van de Poppe said In Wednesday’s post on X, added:
“It is important that they look at key zones of interest for support and I am confident that I will continue to accumulate more positions in this region.”
BTC/USD Weekly Chart. Source: Michael van de Pope
Analysts talk to Colin Crypto. said $65,000-$66,000 is “a reasonable support level for a short-term bounce,” with the BTC/USD pair likely to retest the $60,000 support zone later.
“A retest of $60k is still very likely. And a break below that later this year is certainly not out of the question.”
BTC/USD Six Hour Chart. Source: X/
As Cointelegraph Reportedthe bulls are expected to aggressively defend the $60,000 level, as a break below it could send Bitcoin into a new downtrend.