$400,000,000 Destroyed as Bitcoin (BTC) Drops Below ATH

U.Today - The price of Bitcoin is plummeting, falling below its peak and leading to significant market liquidations. Bitcoin is currently trading at $105154 with a slight downward trend, retracing from its recent highs of about $106,000, according to the price chart provided. The present decline underscores the volatility and difficulties in the vicinity of significant resistance zones, even though Bitcoin maintains a longer-term upward trend.

The situation is given more weight by the liquidation data. With longs suffering the most losses at $327.81 million versus $79.59 million for shorts, over $407 million in positions have been lost in the last day. With $77.99 million in positions related to Bitcoin, BTC is the second-largest contributor to the total liquidations, trailing others by $10,098 million.

Ethereum , which contributed $55.89 million in liquidated positions, also experienced significant losses. Binance is the most affected exchange with a total loss of $11.45 million, which is divided between $4.39 million in longs and $7.06 million in shorts, according to the distribution of liquidations. With $5.16 million in liquidations, OKX comes in second, with an overwhelming 81.94% short bias suggesting that bearish sentiment probably caused a large number of position closures.

Unusual activity in altcoins is further highlighted by real-time liquidity data. Concentrated liquidations occurred in smaller-cap assets like SUI-USDT, DOGE and UXLINK-USDT. The steep decline in Bitcoin probably caused a domino effect on the market as a whole, forcing traders who were overly leveraged to quickly sell their positions. Technically speaking, buyers are intervening to stop additional declines as Bitcoin is still supported close to the rising trendline.

But if Bitcoin is unable to stay above important support levels like $98,400 and $97,900, there might be more selling pressure and liquidations. In the future, traders should keep an eye on Bitcoin's movement around the psychological $100,000 mark. Although a sustained decline could increase liquidations across leveraged positions in both Bitcoin and altcoins, a clear move above this could regain investor confidence. The market is still tense, and volatility is expected to continue for some time to come.

Source: Investing.com