Bitcoin Crashes as Buying Pressure Disappears
At the time of writing, Bitcoin is trading just below $5,000, which marks a from daily highs of nearly-$8,000 that were set around this time yesterday.
This has led many analysts to note that the cryptocurrency could be poised to see significantly further near-term downside, as the unprecedented nature of this ongoing movement has baffled investors and has led BTC’s buying pressure to dissipate.Hsaka, a popular cryptocurrency analyst and trader on Twitter, spoke about the current state of Bitcoin in a recent tweet, pointing to an order book showing that there is very little support between BTC’s current price and $4,000.
E M P T Y — Hsaka (@HsakaTrades)Because of the massive number of sell orders being placed at $5,000 and the lack of buyers to absorb this pressure, it is highly probable that the cryptocurrency will see significantly further downside in the days and weeks ahead.
BTC’s Massive Decline Leads to Wake of Liquidations Totaling at Nearly $800m
One byproduct of this ongoing selloff is the fact that $120 million worth of Bitcoin long positions on BitMEX were liquidated in this latest decline, according to data from Skew.“$665 million bitcoin longs were liquidated just now on BitMEX alone, I repeat, $665 million,” Joseph Young, a popular market commentator, noted in a recent tweet.
$665 million bitcoin longs were liquidated just now on BitMEX alone, I repeat, $665 million — Joseph Young (@iamjosephyoung)
This puts the total dollar value of liquidations seen today at roughly $785 million, which is unprecedented.