Just days ago, traders were expecting for Bitcoin to break past $10,000. Now, the cryptocurrency is trading at $9,000 flat, plunging as bulls fail to maintain the momentum after nearly eight weeks of gains.
Bitcoin price chart of the past few daysâ price action from TradingView.com.
While Bitcoin already sustained weakness yesterday, the latest drop lower â which has taken BTC from $9,500 to $9,000 â caught some traders off guard.
According to crypto derivatives data tracker Skew.com, approximately $25 million worth of long positions were liquidated by BitMEX during this drop lower. Millions more were liquidated on other margin-enabled exchanges too, alternative crypto data sources suggest.
BitMEX liquidation events over the past three days. The right side contains the liquidations sustained in the recent crash.
What Comes Next for Bitcoin?
Analysts are currently short-term bearish on Bitcoin after the recent losses.
One trader observed that BTC is currently âflirtingâ with losing the middle Bollinger Band as support for the first time in a month. BTC fall below this level in March confirmed an over 50% crash last time.
Chart from âBig Chonisâ (@BigChonis on Twitter).
Other top analysts shared similarly bearish sentiment, pointing to the loss of other key support levels as reasons for their assertions.
The Signs Were There
Millions were liquidated during this move lower, but according to data, the signs of an impending retracement were crystal clear.14 BTC & 30,000 Free Spins for every player, only in mBitcasinoâs Crypto Spring Journey! Play Now!
As can be seen in the image below, the crypto analytics firm, IntoTheBlock observed yesterday that the underlying Bitcoin network was âmostly bearish.â
On-chain data for Bitcoin from blockchain intelligence firm IntoTheBlock. The data shows that the cryptocurrency is âmostly bearishâ from an on-chain perspective.
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