The recent drop in Bitcoin’s price has led to a significant long position liquidation, resulting in losses for leveraged traders and highlighting the volatility of the cryptocurrency market.
2024 Sees Bitcoin’s Largest Long Position Liquidation
Recent data shows that Bitcoin’s price decline caused a substantial liquidation of long positions, resulting in forced liquidations for leveraged traders.
Yonsei Dent, a prominent trader and expert, shared the news on CryptoQuant, stating that this liquidation event is the largest since the beginning of 2024.
Approximately 5,500 BTC long positions were liquidated within a day, amounting to around $303 million based on hourly closing prices.
The drop was triggered by a -30% decrease in BTC’s price from its peak and a -16% downswing in 24 hours due to global stock market turmoil initiated by Japan’s interest rate hike.
Bitcoin’s Open Interest also significantly decreased as major exchanges like Binance, Bybit, and OKX witnessed a sharp drop in overall interest.
Yonsei noted that BTC’s price is currently finding support within a range but falling below key levels may impact Long-Term Holders’ realized price.
Despite the bearish state of BTC, bullish indicators suggest a potential recovery, with a bullish flag pattern being observed on the asset’s chart.
Bitcoin Continues to Attract Trader Focus
Despite recent price fluctuations, Bitcoin remains the primary focus of traders according to data from Santiment, a market intelligence firm.
Santiment advised investors to consider purchasing undervalued speculative coins as they have the potential to yield significant returns during market rebounds.
