$220 Million Liquidated Bitcoin Volatility Creates Trail of Destruction

Bitcoin has been caught within the throes within immense volatility over the past day, rallying to highs of $10,400 overnight before losing its momentum and declining down towards $9,000. The overnight rally from lows of $9,400 to its recent highs left a trail of destruction in its wake, causing the crypto to see its largest daily buy-side liquidation of the year, with over $100 million being liquidated. The plunge from this level seen today added to this number, with another $100 million in positions being liquidated. From a technical perspective, it now appears that the benchmark cryptocurrency could be well-positioned to see massive losses in the near-term, with one analyst noting that he is setting buy targets within the $7,000 region. Bitcoin saw a notable overnight rally that led it to highs of $10,400. This movement was sharp and led many traders to grow incredibly bullish on the benchmark cryptocurrency. It’s rally into this price region was short-lived, however, as this morning it incurred a sharp influx of selling pressure that led it back into the lower-$9,000 region. At the time of writing, Bitcoin is trading down 1% at its current price of $9,500, marking a notable decline from recent highs of $10,400 that were set overnight. The latest rejection at $10,000 further confirms that the cryptocurrency is plagued by underlying weakness and could be positioned to see significantly further near-term downside. One incredible byproduct of this latest movement was that over $200 million in positions on trading platform BitMEX were liquidated. This can be clearly seen while looking towards the chart seen below from analytics platform Skew, showing that $123 million was liquidated yesterday evening, with another $96 million being liquidated this morning. Yesterday, short positions accounted for virtually all of the total liquidations, whereas this morning’s liquidations were comprised of long positions. This latest rejection could mark a confirmation of a bearish triple-top formation that leads Bitcoin to see notable downside. One popular cryptocurrency analyst is now noting that he believes the crypto is well-positioned to decline towards $7,000 in the days and weeks ahead. Because this movement likely was the result of a long squeeze, it is possible that Bitcoin’s downtrend will be short-lived. If buyers are unable to break back above $10,000, however, this could confirm the triple top and spark a far-reaching downtrend. BTCUSD, XBTUSD, BTCUSDT

All data is taken from the source: https://www.newsbtc.com/
Article Link: https://www.newsbtc.com/2020/06/02/220-million-liquidated-bitcoin/

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$220 Million Liquidated Bitcoin Volatility Creates Trail of Destruction: https://www.youtube.com/watch?v=YflZvRmlbrs