The price of bitcoin (BTC) experienced a significant drop in its price, from $87,000 to a minimum of $82,000 in the last 24 hours.
This movement represents a drop of 5% in the aforementioned period and 17% in the last seven days, generating a strong impact on the digital asset derivatives market.
The decline in the price of bitcoin triggered liquidations totaling $1 billion in the derivatives marketaffecting numerous traders with leveraged positions in BTC and cryptocurrencies.
Below, the graph provided by the CoinGlass platform allows you to observe these liquidation movements; Operations in all digital assets are taken into account here, not just bitcoin.
Long positions, that is, those that were betting on an increase in price, were the most affected by this wave of liquidations.
The liquidation process is activated when the price of a financial asset moves drastically against the open position, which leads exchanges to automatically close these operations of leveraged traders to avoid negative balancesa mechanism that, as Criptopedia (educational section of CriptoNoticias) explains, intensifies the selling pressure in the market and deepens the initial fall.
With the decline, market attention is now focused on bitcoin’s ability to defend key technical levels.
The $80,000 area is configured as a possible immediate support for the price of BTC. Nevertheless, If this threshold is not sustained, the next relevant support level is located at $75,000.where the market could seek consolidation before defining its next direction.