Bitcoin BTC Retreats from 70000 Mark as Market Experiences 200M in Liquidations
Bitcoin Falls Below $67,000 as $123 Million in Long Positions Liquidated
Bitcoin’s attempt to reach $70,000 fell short as it dropped below $67,000, leading to the liquidation of $123 million in long positions. The leading cryptocurrency briefly reached $69,428 before experiencing a downward trend, resulting in approximately $200 million in total liquidations across the crypto market.
According to data from CoinGlass, long positions were hit hardest by the correction, with $123 million in liquidations across all cryptocurrencies in the past 24 hours. Bitcoin accounted for nearly $47 million of these liquidations, while Ethereum exceeded Bitcoin by a margin of less than $1 million.
Despite the price correction, institutional interest in Bitcoin remains strong. Exchange-traded funds (ETFs) saw inflows of over $2.2 billion last week, making it their strongest week since July. This consistent investment indicates that institutions maintain confidence in the cryptocurrency market.
The price movement of Bitcoin appears to be closely correlated with traditional financial markets, as its 40-day correlation with the S&P 500 remains above 80%. This high correlation suggests that similar factors are currently driving both cryptocurrency and traditional stock markets.
Technical indicators show that Bitcoin is trading below the 100-hour Simple Moving Average, with key support levels established at $66,800 and $66,500. Resistance levels are currently set at $68,000 and $68,750.
Despite the price decline, the derivatives market remains stable. The Bitcoin futures premium remains above 9%, which is traditionally seen as a bullish indicator. Options markets also show resilience, with the 25% delta skew suggesting a neutral to bullish sentiment among traders.
Ethereum, the second-largest cryptocurrency, also experienced a decline, dropping approximately 1% to $2,670. However, Ethereum-focused investment products continue to attract capital, although at a slower pace compared to Bitcoin ETFs.
The recent performance of the cryptocurrency market aligns with broader macroeconomic developments, such as the rise in U.S. Treasury yields and ongoing discussions about government debt management. The annual interest costs of U.S. debt have now surpassed $1 trillion, adding another factor for the market to consider.
Currently, Bitcoin is trading at $67,300, representing a nearly 2% decrease over the past 24 hours, but still maintaining significant gains from its recent rally.
