Key Points
- Bitcoin’s price has dropped below $60,000, prompting liquidation of long positions.
- The cryptocurrency market experienced over $464 million in liquidations on 1st May, with Bitcoin accounting for over $136 million.
Bitcoin’s Price Drop and Its Impact
Bitcoin’s recent price drop has left traders in long positions vulnerable. As Bitcoin’s price declines further, crossing critical thresholds, many holders are liquidating their positions.
Data from Crypto Rank reveals that the cryptocurrency market experienced liquidations totalling over $464 million on the 1st of May. Bitcoin accounted for over $136 million of this outflow.
Long Positions Bear the Brunt
Long positions bore the brunt of the liquidations, with approximately $100.3 million being liquidated on the 1st of May. Conversely, short liquidations amounted to around $36.4 million.
On the 30th of April, long positions also faced more liquidations, with over $95 million being liquidated compared to approximately $18.4 million in short liquidations.
Long liquidations represented over 80% of the total liquidations recorded on the 1st of May. As of the time of this writing, nearly $13 million had been liquidated in long positions, while short liquidations amounted to around $2 million.
Increased Selling Activity
There has been a notable increase in the number of assets being sent to exchanges, suggesting increased selling activity. The number stood at 1200 on the 1st of May.
Further analysis of the BTC flow revealed an inflow of over 32,300. These figures suggest an ongoing trend of increased BTC being sent to exchanges.
Continuous Decline in Price
Bitcoin’s daily chart analysis revealed a continuous decline in price over the past three days. On the 1st of May, Bitcoin experienced a loss of 3.89%, with the price dropping to around $58,260.
This marked the first time it fell below the $60,000 price range since its March surge. At the time of writing, BTC was trading at approximately $57,740, showing a less than 1% decline.
This prolonged price decline has further entrenched a bearish trend, as indicated by its Relative Strength Index (RSI). The downward trajectory in price is also contributing to increased exchange inflow and liquidation of long positions.
