The “pump it” slogan is quickly turning into “dump it” calls as the price of Bitcoin continues to dip to new support levels. Once again, the price of BTC, the largest cryptocurrency, has dipped below key support level at $9,000 USD, threatening a capitulation to $8,500 USD support area.
Bitcoin, the most prominent crypto, is currently trading at $8,860 USD, an intraday low across major exchanges setting highs of $9,382 USD. The sharp fall in price – over 14% in the past 72 hours – signals a further fall in BTC’s price as the two month long bullish trend threatens to come to an abrupt end.
The drop in BTC’s price relative to the dollar, affected a number of traders on Bitfinex and BitMEX, with over $110 million in BTC contracts liquidated.
Over $100 million USD in XBT contracts liquidated
According to Datamish, a data aggregator, $104 million USD in BitMEX’s XBT contracts were liquidated in the past 24 hours as the price dipped below the key support level at $9,000 USD. After a glorious opening to the year, the failure to break resistance area at $10,500 USD brought the price back down crashing to sub-$9,000 levels, the lowest price in a month.
Over the past day, over $100 million worth of XBT longs were liquidated as a further $4.95 million USD shorts faced the axe as the price briefly touched $9,300 USD.
Furthermore, traders were also burned on Bitfinex whereby 586 BTC contracts were liquidated in a 12-hour period– totaling to 730 BTC through the day – signaling a possible capitulation of the bulls in the near future.
At the moment, the price signals a fall further to $8,500 USD levels with the relative strength index (RSI) on the daily charts breaching towards selling levels as the market sentiments turn bearish. Only a miracle can save BTC currently, with bulls expected to maintain the major support/resistance level at $8,700 USD to prevent a death spiral on the market.
BTC still holds the top spot in the crypto market with a total market capitalization of $164 billion USD, representing 64.6% of the total crypto market cap.