Bitcoin Sees Liquidations Worth Millions in a Day: Is BTC Price Feeling the Heat?

  • Bitcoin saw a slight recovery after the decline.
  • The liquidation subsided after the price drop caused a rise.

Bitcoin (BTC) saw a significant decline in the last trading session, leading to a sharp rise in liquidations. Due to this drop, traders who purchased Bitcoin in the last 30 days are now facing losses.

Peak Bitcoin liquidations

AMBCrypto’s analysis of Bitcoin’s liquidation chart on Coinglass revealed a significant increase in liquidation volume on June 24. This rise was mainly triggered by a sharp drop in the price of Bitcoin.

This led to significant liquidations, particularly among long positions, which represented more than $156 million.

In contrast, short positions saw liquidations amounting to around $21 million, indicating that traders who had bet on a price increase were hit the most.

Bitcoin Sees Liquidations Worth Millions in a Day: Is BTC Price Feeling the Heat?

Source: Coinglass

As of this writing, although there has been a slight increase in the price of Bitcoin, short positions have seen more liquidations.

The volume of short liquidations was approximately $13.5 million, while that of long liquidations was lower, at approximately $5.2 million.

This change suggests that traders who anticipated a continued price decline were now facing losses due to the price rebound.

Bitcoin sees slight increase

AMBCrypto’s examination of Bitcoin’s price action revealed a notable decline on June 24, with its value plunging to a low of $58,414 during the trading session.

By the close of the session, it had partially recovered to around $60,263, but still recorded a decline of 4.60% from its opening value. This decline triggered significant sell-offs in the market.

Bitcoin Price Trend

Source: Commercial View

As of this writing, its price has risen to around $61,300, an increase of around 1.70%. During the decline, Bitcoin’s Relative Strength Index (RSI) fell below 30, signaling a strong downtrend.

Although the RSI recovered slightly above this critical threshold, it suggests that even though there was minor improvement, BTC still displayed strong bearish momentum.

BTC holders distraught

Analysis of Bitcoin’s 30-day market value to realized value (MVRV) ratio, as reported by Santiment, revealed a worrying downward trend.

This ratio, which compares the market value of an asset to its realized value, fell below zero around June 10.

The decline indicates that average market participants held Bitcoin at a value lower than their purchase price.

The recent price decline has made this situation worse, with the MVRV ratio collapsing to around -9.7% on June 24.

Bitcoin MVRV

Source: Santiment

As of this writing, the MVRV ratio has recovered slightly, to around -8.14%, but nonetheless remains negative.

Read Bitcoin (BTC) Price Prediction 2024-25

This continued negative value suggests that traders who acquired Bitcoin over the past 30 days were still facing losses on their investments.

A negative MVRV ratio is often considered an indicator that the asset is undervalued and that current holders have purchased at higher prices than the current market is willing to pay, thus maintaining bearish sentiment in the market.

News Source :
Gn bussni

Back to top button