Home CryptoMarket Bitcoin keeps liquidating longs as BTC price action gives up $22K support

Bitcoin keeps liquidating longs as BTC price action gives up $22K support

by CryptoFan
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Bitcoin (BTC) traders are sensitive to even minor price movements as data shows that liquidations are on the rise.

As BTC/USD approaches $21,600 on March 9, BTC longs are seeing their positions evaporate.

BTC hits 3-week low, longs start to fade

despite the consensus Formed around Bitcoin retesting $20,000, small changes in price are still hitting traders.

according to According to data from monitoring resource Coinglass, $24.4 million in BTC long liquidated on March 8. This is the best tally in almost a week.

Bitcoin Liquidation Chart. Source: Coinglass.

This coincides with BTC/USD heading for three-week lows and surrendering $22,000 as support. The downtrend continues at the time of writing, with very few liquidations for the day.

Including altcoins, $95 million long and $15.4 million short were liquidated on March 8.Additional data from on-chain analytics companies glass node Gained long vs. short liquidation dominance.

Bitcoin Futures Long Liquidation Dominance Chart. Source: Glassnode

Commenting on the move, Filbfilb, co-founder of the trading suite DecenTrader, argued that it was no surprise that overexposed long positions were feeling the heat.

“It makes sense to wipe out the majority’s yearning for price direction,” part of a Twitter comment. said.

The attached chart shows the increasing liquidation of leveraged positions.

BTC liquidation chart. Source: Filbfilb/Twitter

Study warns of ‘liquidity crisis’

As reported by Cointelegraph, Bitcoin price action remains relatively flat despite the liquidation action.

RELATED: BTC May Need To Drop To $19.3K To Cool Bitcoin Profit Taking — New Data

February was the least volatile month on record in terms of monthly timeframe opening and closing prices.

But for the Cobessi Letter, a financial commentary resource, this was a cautionary tale not just for Bitcoin.

Analysis of Price Trends After Key Liquidation Event on March 3, Kobe City predicted A “liquidity crisis” spreading across macro assets.

“Net liquidations in the cryptocurrency market surpassed $200 million in an hour. Imagine what happens to the broader market.”

Such a crisis is “the biggest risk to the market right now,” he said.

The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views or opinions of Cointelegraph.