Over $20M in Long Liquidations as Bitcoin Drops to $41,000

Bitcoin broke above $40,000 again last week, marking the digital asset’s fifth break above this point this year alone. Since it was previously trending in its $36-$38k support level, traders had placed their trades in anticipation of the cryptocurrency’s next moves. The digital asset had moved toward $42,000, leaving positive sentiment, but resistance at this point proved devastating to long traders.

Bitcoin Long Traders Suffer Losses

A recent slump in the price of bitcoin caused a significant number of long liquidations to shake the market. Bitcoin, which was expected to break through $42,000 soon, has encountered more resistance than expected. Bears had put up a great battle at this point and eventually the bulls had succumbed to this pressure, pushing the price of the digital asset back down.

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Mass liquidations had followed in its wake. In a single hour, bitcoin more than $20 million in long liquidations taking place in the early hours of Monday† These liquidations increased as the price slipped back below USD 42,000, eventually reaching a low of USD 40,889. At the time, BTC had recorded one of the highest hourly liquidations in its history. It came in at nearly $21 million in longs that liquidated just as the asset fell below $41,000.

Over $53 Million BTC Liquidated in 24 Hours | Source: coin glass

In the past 12 hours, at the time of writing, bitcoin had liquidated more than $31 million. Taking a broader trajectory, $53.63 million worth of BTC has been liquidated in the past 24 hours.

Crypto Market Suffers Liquidations

As the price of bitcoin and other digital assets in the space had turned green, investor sentiment had turned more positive. It is with this positivity that long traders have traded. Bitcoin, which had moved back above its 50-day SMA, had established a new bullish trend, which was expected to break through above $44K. However, as is typical of the crypto market, the price of the asset had fallen again.

BTC starts a new recovery trend | Source: BTCUSD on TradingView.com

Of course, the rest of the market had followed the trend of bitcoin and saw it suffer the same fate. While other assets did not record liquidations as high as BTC’s, they were nevertheless hit by the surge.

Related literature | Bitcoin Breaks the $40,000 Barrier Again – Can It Hold the Momentum?

The second largest cryptocurrency by market cap, Ethereum, has liquidated more than $5 million in the past 12 hours and liquidated a total of $27.37 million in the past 24 hours. In total, the crypto market has recorded a cumulative value of $70.13 million in liquidations in the past 12 hours. And for the last day, $167.72 million has been liquidated.

Bitcoin has resumed its recovery trend again, breaking above $41k. It is currently trading at $41,205 at the time of writing.

Featured image of Finance Magnates, Coinglass and TradingView.com charts

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