Bitcoin (BTC) Tests Sub $9,000 Region, Nearly $80 Million XBT Longs Liquidated In A Day

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Bitcoin price analysis
Bitcoin price analysis

The price of Bitcoin (BTC) dropped below the $9,000 mark for the first time in a week on Thursday as the bulls let off the push to $10,000 USD in the early trading hours in the Ney York session. The sudden drop of BTC/USD to $8,937 USD caused huge liquidations on the BitMEX Bitcoin (XBT) perpetual futures with the market volatility yet again killing off high-risk traders.

Over $80 Million in XBT Longs Liquidated

According to charts provided by Datamish, over $80 million in XBT contracts were liquidated in the past day as the price of BTC dropped to sub-$9,000 levels. As of the time of writing $79.69 million worth of XBT long contracts have been liquidated on BitMEX, with a further ~$1 million in shorts liquidated.

Image: Datamish

The price of BTC/USD dipped below its support level at $9,400 on Wednesday following the reports of a 40 BTC (~$400,000) move of BTC from an 11-year old wallet. While old transactions (this one having last being spent in Feb 2009) are uncommon, this one seemed to give off a bearish sentiment in the market as the indecisiveness and

May 21st liquidations, so far at $38 million on XBT longs is the third-largest daily volume liquidated since the halving and the market is yet to close.

Can BTC Recoup Back $10,000?

With the price of XBT futures back above the $9,000 threshold, currently trading at $9,089, and the relative strength index (RSI) cooling off from overbought levels, the current prices may offer a critical accumulation point for the bulls.

Image: TradingView

Moreover, a successful halving event on May 11, and BTC’s stable price above $9,400 before the sudden Thursday crash, shows strength in the market despite the revenue of miners being cut in half. A breach above the daily charts 20-day Bollinger bands mid-line providing near term resistance at $9,300, will be key to set XBT perpetual futures back on track to $10,000.

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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