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Crypto Bloodbath: $120 million liquidated in Bitcoin and Ethereum longs within an hour

  • Bitcoin and Ethereum prices plummeted by 2.5% over the past hour as liquidation across exchanges crossed $120 million. 
  • $114 million in long positions in Bitcoin and Ethereum were liquidated, fueling a bearish narrative among investors. 
  • Analysts predict Bitcoin price will drop below $39,000 support, and Ethereum struggles to move past resistance at $3,043.

Bitcoin and Ethereum prices struggle to move past resistance as the crypto market downturn forces $120 million in liquidations. 95% of the liquidations are in long positions in Bitcoin and Ethereum. 

Bitcoin and Ethereum prices prepare for drop with mass liquidation

Bitcoin and Ethereum prices witnessed a 4% drop overnight as $120 million in BTC and ETH positions were liquidated within an hour. Based on data from Coinglass, a crypto data analytics firm, 95% of the liquidations occurred in long orders. 

Total Liquidations over the past hour

Total liquidations over the past hour

Within a one-hour time frame, the Bitcoin price dropped below support at $39,000. Proponents have identified a sharp selloff in the Asian trading session on Monday as the key driver for the round of liquidations. Bitcoin and Ethereum prices posted a 4% drop, and the outlook among investors has turned bearish. 

Altcoins like Cardano, Solana and Ethereum witnessed a sudden drop in their price, alongside liquidation in the Bitcoin and Ethereum market. A majority of the liquidation was in long positions, a total of $107 million, and another $3.91 million in short positions were liquidated. 

Analysts have predicted a drop in Bitcoin and Ethereum prices. Crypto analysts at @TrendRidersTR believe Bitcoin’s weekly close was below the rider band, and the bearish momentum dot, a higher low was formed. This is a strong argument for bears as traders continue aggressive profit-taking and the trend remains indecisive. 

@CryptoFaibik, a leading crypto analyst, believes Bitcoin bulls have fiercely defended the $39,000 support; however, losing this level could push BTC to the weekly EMA100 at $36,800. 

@ShardiB2, a crypto analyst and trader, believes Ethereum price could drop further as resistance at $3,043 poses a challenge for the altcoin.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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