Bitcoin Long Liquidations Hit $150M in 3 Days as BTC Price Slumps Towards This Key Resistance Level
Leveraged long positions in the Bitcoin futures market have been getting “rekt” (i.e. stopped out in internet lingo) in the last few days.
According to data presented by crypto derivatives analytics website coinglass.com, long position liquidations have surpassed $150 million over the course of the last three days.
Indeed, Bitcoin’s 10% drop in the past three days from the mid-$30,000s to current levels in the low-$27,000s marks one of the most intense periods of long position liquidation since the start of the year.
Selling pressure accelerated earlier this week when the BTC price broke below key support in the $29,000 area in the form of 1) the 21DMA, 2) an uptrend from late March and 3) the late March highs.
Since this bearish break, technicians have been targeting a retest of support in the $26,500-800 area in the form of a support-turned-resistance level from March and the 50DMA.
Macro developments can partially explain Bitcoin’s drop on the week, which now stands at just shy of 10% (for reference, this would be Bitcoin’s worst weekly drop since the FTX debacle last November).
Survey data out of the US has painted a mixed picture about economic momentum in the US, muddying the water regarding expectations as to the economic outlook, as well as the outlook for further Fed tightening.
That, combined with much hotter-than-expected UK inflation data has pushed US yields higher on the week, typically a negative for non-yielding crypto assets like Bitcoin.
Some analysts have pointed to ongoing uncertainty regarding the regulatory situation in the US another factor weighing on crypto, with SEC Chair Gary Gensler’s appearance before Congress earlier this week adding little certainty to the outlook.
Meanwhile, the passing of landmark
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