Bitcoin Faces Massive Liquidation: 7,500 BTC Wiped Out in One Day
- CryptoQuant reports the largest Bitcoin long liquidation, with 7,500 BTC wiped out due to rising market volatility.
- Bitcoins price drops 10.55%, hitting a yearly low of $74,508 after failing to break the $85,000 resistance level.
- Bitcoin remains under pressure with an RSI of 36, signaling bearish momentum, but may rise to $90,000 if it surpasses $85,000.
Cryptocurrency analytics platform CryptoQuant identified the largest Bitcoin long liquidation since the start of the current bull market. About 7,500 BTC in longs have been wiped out in a single day. This major event was spurred by increasing fluctuations in the market, mainly due to the unpredictability of the previous president Trump with regard to the market, particularly concerning tariffs and their effects on the market.
Bitcoins Price Struggles
The big proportions of the liquidation point to the growing threats associated with increasing fluctuations in the market. The value of a BTC can change a great extend during volatile circumstances, and this poses risks to investors. BTC was already in a lose after being ejected from its resistance level of $85,000 on April 2. By the following Tuesday, the cryptocurrency had declined slightly to 10.55% to a yearly low of $74,508.
Currently, BTC is trading at $76,888 and its still below the previous high. The cryptocurrency is currently at a precarious state and analysts are observing whether it is in headed for further reduction. Bitcoin could collapse to the next support level of $73,072 if it fails to maintain the current price. In the short term, the future of the BTC price cannot be ascertained either way since much depends on outside forces and the overall attitude towards the digital currency.
Source: TradingView
As it stands right now, the daily RSI is at 36, which shows that Bitcoin is in bearish territory. This indicates that the market is bias towards the continuation of downward pressure. This is clearly observable by the failure to surge past $85, 000 leading to the question of the markets next direction. Holders are thus watching and waiting to see whether bitcoin will bounce back up in the market.
However, it is still possible for an economic recovery if all parties involved take certain measures in the new year. If the Bitcoin price should rise above $85,000, there will be an upward movement towards $90,000, which is a significant psychological level. This would pinpoint a revisit of the profound bullish signal, which warrants a sturdy uptrend in the following weeks.
Such fluctuation is still evident in the cryptocurrency market, and such a period plays a significant part in demonstrating the uncertainty within the market. The volatility is still persistent due to the fluctuating investors responses to the evaluations of global economic factors and political instability. Despite the record growth of Bitcoins price, investors are also warned that its price may fall sharply in the near future.
Read more: https://www.tronweekly.com/bitcoin-faces-massive-liquidation-7500-btc-wipe/
Text source: TronWeekly
