Over $100 million in leveraged positions in Bitcoin were liquidated in the last 24 hours, prompting concerns of a potential correction towards the $50,000 level.
According to CoinGlass data, Bitcoin (BTC) liquidations amounted to $100.4 million, primarily driven by the closure of leveraged long positions exceeding $86 million.
The liquidation event was triggered by three consecutive days of negative price movements, which saw Bitcoin’s value drop from over $62,000 on July 2 to a low of $57,043 by 9:22 am UT on July 4, based on CoinMarketCap figures. Despite recovering to trade above $57,800 as of 9:40 am UTC, Bitcoin remained down by more than 4.5% on the daily chart.
Monitoring Bitcoin’s performance around psychological thresholds such as $60,000 holds significance in assessing the current cycle, particularly with the recent introduction of the first spot Bitcoin exchange-traded funds (ETFs).
In another significant development, Bitcoin dipped below the average realized buying price of spot Bitcoin ETF buyers, standing at $57,979—a key support level for BTC analysts. However, ETF buyers refrained from panic selling, evidenced by net total outflows of only $20.5 million on July 3, primarily from Grayscale’s ETF, according to Farside Investors data.
Yet, concerns remain about potential ETF panic selling after the Fourth of July holiday, a notable date in the United States.
Further pressure on Bitcoin’s price could come from impending Mt. Gox repayments scheduled for early July, which are set to distribute over $9.4 billion worth of Bitcoin to 127,000 creditors after a decade-long wait.
Following the recent three-day price decline, Bitcoin also lost its 200-day trend line for the first time in ten months, delaying a potential breakout until BTC breaks the downtrend initiated in early June, as highlighted by crypto analyst Rekt Capital.
However, some traders interpreting technical chart patterns suggest that this could merely be a price shakeout—a sudden drop followed by a swift recovery caused by numerous investors exiting their positions, an analysis shared by popular Bitcoin investor Elja Boom.
Nonetheless, analysts at 10x Research caution that Bitcoin’s descent to the $50,000 threshold remains plausible, driven by accelerated sell orders.
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