Sudden Bitcoin Price Drop Prompts Liquidation of $127M Long Positions
Summary:
Bitcoin's price took a sudden dip of over $2,000 within an hour on May 10, catching leveraged long investors by surprise. The leading cryptocurrency suffered more than a 2.5% drop in value in 24 hours, which analysts attributed to its final accumulation stage. This dip also led to the liquidation of long positions worth $127 million, contributing to a total 24-hour wipeout of nearly $175.17 million.
On May 10, a sudden bout of volatility ignited by a steep $2,000 drop in Bitcoin's (BTC) price in just an hour sent ripples through an otherwise tranquil market. According to data from Cointelegraph Markets Pro and TradingView, this unexpected drop, from May 10's high of $63,494 to a low of $60,308 within the day, left leveraged long investors off balance. At the point of reporting, Bitcoin, the leading cryptocurrency, had seen more than a 2.5% decline in its value in a span of 24 hours.
MN Capital's founder, Michaël van de Poppe, responded to the event saying, "The final accumulation is happening," referencing a trend that has become common for Bitcoin in short intervals since its halving. He clarified this includes the "low volatility" and irregular price movement Bitcoin has been demonstrating since Feb. 29, and how the recent crash took Bitcoin "back to the crucial support zone".
He further added that if this doesn't hold, we might see a plunge to $52-55K, signifying the final phase of correction.
Simultaneously, Daan Crypto Trades, a noted trader, suggested the swift slump to $60,000 on May 9 was a rapid ploy to "penalize those longs that went full throttle over $63K."
Sadly, those banking on Bitcoin's recovery going over $64,000 suffered significant losses on Friday, May 10. Data from Coinglass reveals that this downturn led to $127 million worth of long positions getting liquidated within 24 hours, contributing to a total extinction of $175.17 million.
Following this downturn, leveraged positions valuing $9 million in Bitcoin were liquidated in the past hour alone, with $6.36 million of these being longs.
Please note that this piece is not offering investment advice or recommendations. Investing and trading both harbor risks, hence it's of paramount importance that readers do their buyer diligence before making any decisions.
Published At
5/10/2024 10:05:48 PM
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