The price of bitcoin (BTC) surprised investors on Friday in the first few hours of US trading. This sudden price movement contributed to Bitcoin dragging the cryptocurrency market down. As a result of a move that blindsided millions of participants in the cryptocurrencycurrency market, both long and short holders of bitcoin were surprise. The fact that it occurred just one week before the much anticipated BTC halving is interesting.
liquidations
More precisely, long Bitcoin positions over $126 million were completely destroyed by short positions totaling $41 million. Even though it was awful, those solid hands who managed to hold onto their composure as the price of Bitcoin recovered to $72,700 on Monday have been rewarded for their perseverance. With just one week left until the halving, the current downturn may present a favorable buying opportunity for late-stage bulls and those who had previously written themselves off as out of the picture when Bitcoin reached and exceeded the $69,000 barrier.
As the price of bitcoin declines, nearly $1 billion in liquidations. Many traders were taken aback when the price of bitcoin dropped back to as low as $65,086 during the first few hours of the New York session. Data from the information center Coinglass shows that there have been approximately $881 million in liquidations overall, with $784 million coming from long positions and $96 million from short positions.
The price of Bitcoin may not be due for a comeback anytime soon, at least not this weekend, based on the BTC/USDT 1-day chart, which shows a number of technical signs that are in favor of the bears. To begin with, the Relative Strength Index (RSI) is still below the mean level of ’50’. The Moving Average Convergence Divergence (MACD) and the Awesome Oscillator (AO), which are slenderly holding above the mean level to their respective negative areas, flank it as well.
As this is going on, @DaanCrypto, an analyst on X, notes that the price of bitcoin is developing a sizable liquidity zone around $72,000. The current shift is not surprising, as positions are accumulating on both sides, and it might have set the stage for more to come as markets get ready for the BTC halving in one week.
Read also: Bitcoin Halving Effectiveness Fades, Demand Plays Pivotal Role: CryptoQuant Analysis
