Bitcoin Drops 6%, Crypto Liquidations Hit $314M, What’s Next for Market?
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Bitcoin (BTC), the world’s biggest cryptocurrency experienced notable selling pressure after the closing of the US stock market, leading to a price drop of over 6%. The decline began as the bankrupt crypto lender Celsius repaid nearly $2.5 billion to its 251,000 creditors.
Crypto Liquidations Hit $313 million
Amid this selling pressure, top cryptocurrencies including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) have experienced a record slump similar to the market crash on August 5, 2024.
Data from the on-chain analytic firm CoinGlass suggest more than 85,500 traders were liquidated in the last 24 hours. Meanwhile, the total liquidations recorded by the firm stand at $314.19 million. The single largest liquidation order occurred on Binance ETHBTC, valued at $12.67 million.
According to the data, the major liquidation came from the longs bet as bulls have liquidated over $282.05 million worth of long positions. This indicates that bulls were expecting an upside rally, but it did not go as they anticipated.
Meanwhile, short sellers liquidated only $31.70 million worth of short positions during the same period.
Bitcoin Price Prediction
As of now, BTC is trading near the $59,200 level and has experienced a price drop of over 6% in the last 24 hours. Meanwhile, its trading volume has increased by 36% during the same period, indicating higher participation from traders amid price decline.
According to expert technical analysis, BTC looks bearish and there is a high possibility that it will fall in a downtrend. Following a record price drop, BTC witnessed a notable breakdown of crucial ascending trendlines. If it closes a daily candle below the trendline, there is a high possibility that BTC could fall to the $54,000 level or even lower.
Will BTC Fall Again?
Despite 251,000 creditors receiving repayment, there are still 121,000 creditors who may receive funds soon, which potentially creates more selling pressure. So far, Celsius has distributed $2.57 billion, which is nearly 36% of the total repayment amount. This suggests that the market could face further declines if all creditors receive their repayments.
