Bitcoin

Rekt

Over $100 million worth of leverage was liquidated in Bitcoin during the past 24 hours, causing concerns about a potential correction to the $50,000 mark.
Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) liquidations reached $100.4 million, with over $86 million worth of cumulative leveraged long positions liquidated, according to CoinGlass <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">data</a>.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/8368a8ed-c820-44ba-bbe5-bf774eadf3ff.png" alt="" title="">
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 Bitcoin liquidations, 24h, Source: CoinGlass
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The liquidations were triggered by three consecutive days of negative price action that took Bitcoin’s price from over $62,000 on July 2 to a low of $57,043 hit at 9:22 am UTC on July 4, according to CoinMarketCap data.
Bitcoin has since bounced back to trade above 57,800 as of 9:40 am UTC but was still down over 4.5% on the daily chart.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/26109d0e-6fcc-437c-adf6-86c978414ea3.png" alt="" title="">
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 BTC/USD, 1-day chart. Source: CoinMarketCap
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Monitoring Bitcoin’s performance around psychological numbers like $60,000 is important to determine the progress in the current Bitcoin cycle, which is unique due to the introduction of the first spot <a href="https://cointelegraph.com/learn/bitcoin-etfs-a-beginners-guide-to-exchange-traded-funds">Bitcoin exchange-traded funds (ETFs)</a>.
Related: <a href="https://cointelegraph.com/news/marathon-digital-holds-bitcoin-june">World’s largest Bitcoin miner didn’t sell any BTC in June</a>
<h2 id="bitcoin-falls-below-etf-buyer-realized-price-but-etfs-aren-t-panic-selling-yet">Bitcoin falls below ETF buyer realized price, but ETFs aren’t panic selling (yet)</h2>
In another significant development, Bitcoin fell below the average realized buying price of the spot Bitcoin <a href="https://cointelegraph.com/learn/different-types-of-etfs">ETF</a> buyers, or $57,979 — considered a significant support line for BTC analysts.
Despite the fall, ETF buyers haven’t started panic selling, as there were only $20.5 million worth of net total outflows on July 3. Grayscale’s ETF accounted for the majority, or $27 million worth of outflows, according to Farside Investors <a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener nofollow">data</a>.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/a660bdc3-7b59-419d-9d40-0a058f760df9.png" alt="" title="">
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 Bitcoin ETF net flows, Source: Farside Investors
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However, panic selling of ETFs could still occur after investors return from the Fourth of July holiday, which is Independence Day in the United States, the world’s largest economy.
The <a href="https://cointelegraph.com/news/bitcoin-drops-below-60k-mt-gox-repayment">incoming Mt. Gox repayments</a>,&nbsp;expected in early July, could add additional selling pressure for Bitcoin. The Mt. Gox creditor repayments&nbsp;<a href="https://cointelegraph.com/news/mt-gox-trustee-start-bitcoin-bitcoin-cash-repayments">will distribute over $9.4 billion worth of Bitcoin</a> to 127,000 creditors who have been waiting for over 10 years to recover their funds.
Related: <a href="https://cointelegraph.com/news/how-long-will-the-bitcoin-consolidation-last">How long will Bitcoin’s price consolidation last?</a>
<h2 id="bitcoin-correction-or-temporary-shakeout">Bitcoin correction or temporary “shakeout?”</h2>
Following the three-day price drop, Bitcoin&nbsp;<a href="https://cointelegraph.com/news/bitcoin-price-loses-200-day-trendline-first-time-in-10-months">lost its 200-day trend line</a> for the first time in 10 months.
This means that a potential breakout will be further delayed, until BTC breaks the downtrend that started in early June, according to popular crypto analyst Rekt Capital, who <a href="https://x.com/rektcapital/status/1808554219345211827/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in a July 3 X post:
<blockquote data-ct-non-breakable="true">
 “Breakout postponed due to a failed retest of the June Downtrend as new support. This is still the trendline to watch for a shift in the trend going forward nonetheless.”
</blockquote>
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/63e73cf4-c972-49be-9caa-2fd5e85aa929.jpg" alt="" title="">
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 BTC/USD, 1-day chart. Source: Rekt Capital
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However, technical chart patterns analyzed by some traders suggest that this may just be a price shakeout — a sudden price drop caused by multiple investors exiting their positions, preceded by a sudden price recovery.
A Bitcoin shakeout is likely based on technical analysis shared by popular Bitcoin investor Elja Boom, who commented in a July 4 X <a href="https://x.com/Eljaboom/status/1808787915066966472/photo/1" target="_blank" rel="noopener nofollow">post</a>.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/4422bf7f-be16-4bab-a51e-d33ec289500a.jpg" alt="" title="">
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 Bitcoin shakeout. Source: Elja Boom
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Yet analysts at 10x Research warn that Bitcoin&nbsp;<a href="https://cointelegraph.com/news/bitcoin-crash-50k-10x-research-warning">could still revisit the $50,000 mark</a> due to accelerating sell orders.
Magazine: <a href="https://cointelegraph.com/magazine/financial-crisis-end-crypto-bull-run/">Could a financial crisis end crypto’s bull run?</a>

$100M Bitcoin liquidated as BTC drops: Will ETF investors panic sell?

目錄

Cointelegraph

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