Bitcoin Price Drop Leads to Liquidation, May Dip Further

By: Eliza Bennet

Over the weekend, Bitcoin's price dipped below $42,000 for the second time, witnessing a significant liquidation of long positions on most large exchanges. The digital asset traded at $41,870, still above the vital support level of $40,250. However, the sell pressure continues to increase as the Asian markets prepare for trading.

This dip led to the liquidation of approximately $23.68 million in the last 24 hours, mostly affecting traders on renown exchanges like Binance and OKEX, experiencing liquidations of $7.51 million and $5.26 million respectively. Despite this drop, ETF issuers have reportedly purchased 23,000 BTC during this downturn, with firms like BlackRock accounting for the acquisition of 11,500 Bitcoin.

Following the launch of spot Bitcoin ETFs that led to a surge in Bitcoin’s price to $49,000, there has been a downturn, typical of sell the news events. From market behavior, it seems the price could revisit the $40,000 mark if it fails to recover above the $43,250 resistance zone. This prediction aligns with the foreseen bearish trend line formed with resistance near $42,850.