Over $17 Million USD In Bitcoin Contracts Liquidated, Is A Selloff To $9,000 On The Cards?

By Lujan Odera
Published February 25, 2020 Updated February 25, 2020
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Over $17 Million USD In Bitcoin Contracts Liquidated, Is A Selloff To $9,000 On The Cards?

By Lujan Odera
Published February 25, 2020 Updated February 25, 2020

Over $17 million USD in Bitcoin liquidated over the past 24 hours as BTC plummets to $9,500 USD, is a selloff on the cards?

2020 started off very bullish across the crypto market as the top coins gained handsome double digit gains as Bitcoin (BTC), the top cryptocurrency, gained 33% in this period. However, in the past 24 hours the market faced a bearish reversal setting BTC’s price aback to $9,556 as at time of writing from levels above $10,000 at the start of the month.

The price of Bitcoin (BTC) took a substantial hit as bears pushed it below the $9,500 USD wiping off over $17 million in BTC contracts on BitMEX and a further 100+ BTC contracts on Bitfinex in 12 hours – the second highest no. of liquidations in the past fortnight.

Over $18 million long and short contracts liquidated on BitMEX (Image: Datamish)

Despite the market still showing signals of a possible continuation of a bull run, the fundamentals are slowly turning bearish. The market experiencing a Long Squeeze, a phenomenon that sees traders close their highly leveraged funded positions and sell the base asset.

While the $19 million USD liquidation may not be enough to influence a major move in the market, a bearish reversal signal can be derived from the liquidations. A long squeeze adds more pressure on BTC’s selling market and the short test below the $9,500 USD mark may further confirm a possible move towards the $9,000 USD mark.

BTC/USD turns bearish as $9,000 lingers

A look at the daily charts signals a bearish move in the near term. The price trades below the 20-day Bollinger Band middle line, turning the key support levels to key near term resistance. A breach below minor support levels at $9,467 USD will be a death move for the pioneer cryptocurrency, as bears take up positions in the market. Daily trading volumes spiking during a downtrend further signals the trend is set to continue.

Image: TradingView

Bulls should be on hand to prevent a breach below the $9,350 near term support levels, to prevent a slide to lower support levels at $9,200, $9,070 and sub-$9,000 levels.

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Disclaimer
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.
About Author
Lujan Odera
396 Articles
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

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