Bitcoin Faces $623 Million Liquidations as Price Falls Below $64,000

By: Isha Das

Bitcoin and other cryptocurrencies faced significant liquidation challenges as the Bitcoin price fell below $64,000 for the first time in about two weeks. Overall, this slump resulted in approximately $623 million worth of long and short liquidations in the market in the past 24 hours, according to recent data.

The bulk of these liquidations were longs, amounting to $454 million, while only $87 million accounts for short liquidations. The fall in Bitcoin price alone was responsible for $156 million of the total liquidations. It's important to note that the market has experienced an increase in both long and short liquidations over the past 30 days.

Predictions from traders suggest Bitcoin prices could fall as low as $55,000 in the coming weeks, adding more pressure on the market. However, despite this short-term dip, the long-term bullish market outlook continues to hold and many traders remain eager to re-enter the market among the current volatility.

Despite significantly clearing out leverage around liquidation levels due to sharp price movements, traders have been setting new leveraged positions, both long and short, at each new support and resistance. The leverage over an extended timeframe shows a crucial band of long leverage around the $50,000 mark, with sizeable bands just below $60,000.