- Bitcoin trims almost all the gains accrued last week as it tests support at $45,000.
- Long positions liquidations soar to $312 million while Bybit accounts for more than half.
Bitcoin and cryptocurrencies suffered yet another blow on Monday during the Asian session. The massive drop of more than 5% in the crypto total market capitalization has mainly been fueled by liquidations on derivative exchanges. In less than an hour, liquidations increased to over $312 million, with Bybit accounting for more than half precisely $153 million.
Losses are ongoing across the vast cryptocurrency market, with some top cryptocurrencies affected the most. Bitcoin corrected by over 5% to trade around $46,000 at the time of writing. Ethereum has also not been spared the ax, trimming 6.2% off its value in 24 hours. Similarly, Solana seems to have bled the most as losses amounted to 12% in the same period.
Bitcoin Price Hunt For Formidable Support Begins
Last week, Bitcoin closed the gap toward $50,000, putting up a fierce fight but stopped within a whisker of $49,000. An immediate reflex correction took precedence, resulting in initial losses to $48,000, which later stretched to $47,000.
The bearish leg continued, most likely triggered by the colossal liquidation of long positions on derivative exchange platforms as observed. Bitcoin extended the downward action near $45,000, whereby support is anticipated.
Nonetheless, we cannot ignore the vivid bearish picture considering the short timeframe analysis. For instance, the Moving Average Convergence Divergence (MACD) emphasizes the massive bearish view.
As the price dropped from weekend highs, the MACD closed the gap back to the mean line. Currently, the momentum calculator has slipped into the negative region, suggesting that sellers are dominantly in control.
BTC/USD Daily Chart
Realize that the 100 Simple Moving Average (SMA) has recently crossed below the 200 SMA, adding weight to the bearish narrative. This pattern is not a golden cross, but analysts use it to validate an ongoing downtrend. Therefore, if support at $45,000 fails to hold, Bitcoin will likely drop to $44,000.
Bitcoin Intraday Levels
Spot rate: $45,492
Support: $45,000 and $44,000
Resistance: $46,000 and $48,000