Liquidation on BitMEX and Miners Outflow to Exchanges are Responsible for Today Price Drop
The world leading crypto derivatives platform BitMEX has witnessed two huge liquidation events which brought BTC price value from $9,660 to $9,262 in a matter of hours today. Analysts believe that value is not under the bearish season yet.
Liquidation of BTC Longs worth $25 Million
According to the crypto trading terminal Cryptowatch, in the two massive liquidations on BitMEX, Bitcoins longs worth $25 million liquidated:
#Bitcoin falls to a low of $9,262 as over $25 million $BTCUSD longs get liquidated at BitMEX.https://t.co/B7gu0EfYSk pic.twitter.com/2b04tihBT8
— Cryptowatch (@cryptowat_ch) June 24, 2020
According to the data taken on BitMEX, the first liquidation ($6.5M) on the derivative exchange took place between 08:15 AM and 09:00 AM. And second liquidation ($18.6 M) event happened at 11:30 AM.
The today move proved as an upset move for the top leading asset as it plunged suddenly. But analysts are not considering this as a bearish attempt by sellers. Bitcoin is still in the bullish zone which is a good news for the crypto industry.
Anonymous trader pointed out the level in his shared graph that $9,138 is the crucial retest level for Bitcoin. It is the same level from which value tumbled down on Black Thursday.
Crypto trader, and analyst, @scottmelker believes $9,270 is the most crucial level and support for BTC value. And it needs to go above $9,552 for bullish rally. He added:
“Mixed bag. Rejection at the bottom of the ascending wedge. Bearish. Failed to hold $9552. Bearish. Found support at $9270. Bullish. Attempting to retest the descending blue line as support. Bullish if successful. 50 MA being tested as support. Bullish if successful.”
Overnight Miner Outflows
The miners are also behind the today drop as they are sending more BTC to exchanges for liquidation. Crypto data firm Glassnode found out on Tuesday that the net flow of BTC from the miners’ addresses went to the lowest level since June 2019.
On this outflow by miners, crypto analyst Cole Garner tweeted:
“There has been a big spike in miner outflows overnight, I’m expecting a whole lot of selling, starting real soon.”
Currently, Bitcoin is trading at $9,330 after suffering by -3.30% in the last 24-hours.
This post is brought to you by OMC Markets
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