$576 Million Liquidated As Bitcoin (BTC) Price Cracks 7%, More Pain Ahead?

The crypto market party seems to be coming to an end with the Bitcoin (BTC) price cracking up nearly 8% trading at $67,345 with a market cap of $1.322 trillion. The broader cryptocurrency market has lost more than $200 billion in the last 24 hours. The selling pressure across the broader crypto market comes as the US announced higher-than-expected PPI inflation data.

$450 Million of Bitcoin Longs Liquidated

In recent trading, Bitcoin’s value dipped below the $68,000 mark, reaching $67,788, marking a 7.53% decline over the past 24 hours, as indicated by data from Binance. Concurrently, Coinglass data reveals that liquidations across the network totaled $576 million within the same timeframe, with long positions accounting for $448 million of the liquidated amount. This widespread liquidation activity has affected 167,000 individuals.

According to Santiment, Bitcoin’s price has dropped below the $70,000 mark for the second time in a span of just three days. Analysis of on-chain transaction volume highlights the increased activity on the network. However, a positive aspect emerges as holders are beginning to decrease once more, suggesting a necessary phase of capitulation.

Furthermore, the Santiment data also points out the whale accumulation taking place in recent weeks. According to Santiment, significant stakeholders in Bitcoin have played a pivotal role in driving the recent surge in market capitalization over the last five weeks. Wallets holding between 10 and 10,000 BTC have accumulated 154.16K coins since February 4th, amounting to approximately 0.665% of the total supply. At present, the value of these holdings exceeds $10.9 billion.

More Pain Ahead for BTC Investors

In an assessment of current market dynamics, crypto analyst CrediBULL Crypto shares insights into the recent price action, suggesting that the anticipated upward momentum has not materialized, indicating a potential downward trend unfolding.

CrediBULL Crypto notes the recent drop in prices, which has resulted in the reduction of built-up Open Interest (OI) in the market. However, despite this decline, the analyst suggests that there is still room for further downside movement before reaching a presumed “baseline.” CrediBULL Crypto identifies a potential support level in the range of 63,000 to 64,000 USD, referred to as the “green zone”.

According to the analyst, this identified range presents a logical area where a bounce or reversal in price could occur, potentially coinciding with the complete elimination of remaining OI buildup.