Key Points
- Bitcoin’s liquidation has been below $50 million over the past 48 hours, with the cryptocurrency maintaining a $60,000 price range.
- Despite a significant price drop last week, recent trends suggest a market stabilization.
Bitcoin’s [BTC] price has experienced a notable decrease over the past week, falling beneath the $60,000 mark.
This decline led to an increase in both short and long liquidations, resulting in the elimination of some positions.
However, recent data indicates a balance between price fluctuations and liquidations, hinting at a potential market stabilization.
Liquidation Trends
An analysis of the Bitcoin liquidation chart on Coinglass revealed a spike in liquidation on April 30 and May 1.
On April 30, the liquidation volume exceeded $113 million, with long positions making up over $95 million.
This trend continued into May 1, where the liquidation volume surpassed $136 million, and long positions accounted for over $100 million.
Nevertheless, as BTC’s price bounced back and reclaimed the $60,000 price range, the liquidation volume began to decrease.
Since May 2, the liquidation volume has only surpassed $50 million once, with the latest data indicating a liquidation volume of approximately $10 million.
Price Trends
An examination of Bitcoin’s price trend on the daily timeframe chart showed a significant rebound following its declines on April 30 and May 1, during which it suffered an 8% loss over 48 hours.
Chart analysis revealed consecutive uptrends starting on May 2, with a significant increase of over 6% observed on May 3.
By the end of trading on May 4, Bitcoin had risen by over 1%, reaching roughly $63,900.
Despite a slight decrease of less than 1%, it has managed to maintain the $63,000 price range.
However, its short moving average (yellow line) continues to act as resistance at around $66,000.
Market Value Realized Value ratio (MVRV)
Bitcoin’s 30-day Market Value Realized Value ratio (MVRV) indicated that holders experienced a period of being underwater for much of April.
The chart showed that BTC remained below zero and reached its lowest point in months, dropping to -9.71%.
However, at the time of this analysis, the MVRV has slightly risen above zero, hovering around 0.026%.
This suggests that holders within this timeframe are profiting, likely due to the recent slight increase in BTC’s price.
