Bitcoin (BTC) experienced a significant drop of over $2,000 in just one hour on May 10, causing a sudden surge of volatility in an otherwise calm market. Data from Cointelegraph Markets Pro and TradingView showed that leveraged long traders were caught off guard as BTC price plummeted from its high of $63,494 to an intra-day low of $60,308. The losses continued to mount, with the flagship cryptocurrency losing more than 2.5% of its value over the past 24 hours.
According to MN Capital founder Michaël van de Poppe, this drop is part of the ongoing accumulation phase in Bitcoin, characterized by low volatility and choppy price action since February 29. Van de Poppe added that this crash brought Bitcoin back to an important area of support.
Trader Daan Crypto Trades noted that the flash crash to $60,000 on May 9 was a deliberate move to punish those who had entered long positions above $63,000. However, those who were betting on BTC’s recovery above $64,000 suffered significant losses on May 10, with $127 million in long positions being liquidated and a total wipeout of $175.17 million in just 24 hours, according to data from Coinglass.
In the past hour alone, $9 million in BTC leveraged positions were liquidated, with $6.36 million of that coming from long positions. It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.