The price of bitcoin has once again fallen below $22,000 once more. As expected, it has come with its own consequences for those in the crypto market. Most prominent have been in the liquidations, which have ballooned in the last 24 hours. With the most recent crash, more than 57,000 traders have seen their positions liquidated.
Bitcoin Dip Triggers $151 Million Liquidations
Over the last 24 hours, more than 57,000 traders have been liquidated in the crypto market. This has led to a total of $151 million in assets liquidated over the last day. The most prominent of these has been the Ethereum liquidations.
Ethereum, which had taken the lead during the market recovery and rallied higher than $1,600, had led the short liquidations and now, continues to lead in terms of long liquidations. Ethereum liquidations alone have crossed $70 million in the last 24 hours and $20 million in the last 12 hours.
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Others include bitcoin, which has only seen half the volume of liquidations compared to Ethereum. In total, there have been more than $30 million in bitcoin liquidations in the past day, accounting for 1.38K BTC. This makes it the second-largest liquidation for a digital asset in the last day. The majority of liquidations have been from long traders at 63.96%.
BTC price falls below $22,000 | Source: BTCUSD on TradingView.com
FOMC Looms Over Market
The recovery that had been rocking bitcoin and other cryptocurrencies has been stopped dead in its tracks as the week opened. There are various factors behind this decline such as large corporations announcing earnings and showing that they had dumped a lot of bitcoin.
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Additionally, the FOMC is starting on Tuesday, and the announcement is expected to be made on Wednesday. So basically, while this is turning out to be a big week for the financial market, it doesn’t necessarily mean that the market would see any good price action.
Bitcoin had also not been able to beat its 200-week moving average, and the resistance faced at this point has brought the price to a lower support point. This has marked a bearish trend for bitcoin, meaning that the digital asset will likely test $20,000 in the coming days.
Featured image from Finance Magnates, chart from TradingView.com
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