$45 Million in Bitcoin Longs Wiped Out as Price Briefly Dips Below $29K – Here’s Where BTC Is Headed Next
Leveraged long positions in the bitcoin (BTC) futures market worth $41.5 million were liquidated on Monday, the second largest daily for long liquidations so far this month, as per CoinGlass.com.
The spike in long liquidations came as bitcoin fell nearly 3.5% to fresh one-month lows under $29,000.
The BTC spot price was last just above $29,000, with crypto investors/traders locking in profits after this year’s impressive performance amid a lack of fresh positive catalysts to drive further gains in the bitcoin market.
Caution ahead of this week’s US Federal Reserve policy announcement (on Wednesday) and US Core PCE inflation (on Friday) could also be playing a role in the downside, as could fresh negative headlines relating to Binance, the world’s largest cryptocurrency exchange.
As per CoinGlass.com’s Bitcoin Exchange Liquidation Map, a further wave of long-positions would be wiped out if Bitcoin fell under $28,500.
As per CoinGlass.com’s graphic, leverages long bitcoin positions worth nearly $500 million are at risk of being stopped out before BTC hits $28,400.
But the bears shouldn’t get too excited, as if bitcoin was to suddenly rise back into the mid-$29,000s, this could trigger a short-squeeze, with leveraged short-positions worth over $600 million at risk of being stopped out if the BTC price was to rise back to $29,600.
Despite bitcoin’s slip-up on Monday, investors remain optimistic about the cryptocurrency’s near-term trajectory.
At least, that’s the takeaway from looking at how bitcoin options markets are priced.
The 25% delta skew of bitcoin options expiring in seven days was last around 1.25, as per data presented by The Block, suggesting that investors are still paying a premium for bullish call options expiring in
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