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Bitcoin price taps 3-week lows as SEC fears liquidate $250M of crypto longs

Panic over regulatory enforcement sees Bitcoin and altcoins give up recent gains, costing long traders over a quarter of a billion dollars in a single day.

Bitcoin BTC $21,719 fell to bearish target zones on Feb. 10 as bulls failed to hold important support above $22,000.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Crypto wipeout mounts as BTC price loses $22,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping to $21,633 on Bitstamp.

The pair reacted badly to regulatory fears from the United States but had already faced days of bearish sentiment, with traders expecting a retest of $21,000 or even lower.

At the time of writing, Bitcoin traded at around $21,800, down around 7% in February so far.

“Bear market back or are we just having a slight correction?” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, queried on the day.

BTC/USD annotated chart. Source: Crypto Tony/ Twitter

Some were busy with short positions as BTC price action conformed to expectations, with popular trader Crypto Tony eyeing $21,400 as a potential bounce zone should losses continue to materialize.

“Profit coming in nice on the short and my next target is the support cluster at $21,400. If we see a retest of $22,300 then this could be your chance to get in, upon a failed retest,” he wrote in part of commentary alongside an explanatory chart.


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Those remaining in long positions thus felt intense pain overnight. According to data from data resource Coinglass, long liquidations for Bitcoin alone totaled $64.6 million for Feb. 9.

BTC liquidations chart. Source: Coinglass

On-Chain College, a contributor at analytics platform CryptoQuant, noted that these included $24.3 million in a single hourly candle — the most since the FTX crash in early November 2022.

BTC/USD annotated chart. Source: On-Chain College/ Twitter

Feb. 9 liquidated $254 million in longs, including altcoins.

Analyst looks for $16,000 bottom “confirmation”

Looking beyond immediate price performance, fellow CryptoQuant contributor Venturefounder focused on whether the macro bottom was really in for Bitcoin.

Related: Arthur Hayes bets on Bitcoin, altcoin surge in H1 2023 as he buys BTC

If BTC/USD were to preserve the 200-day moving average (DMA) near $20,000 — or even $19,000 — as support, he argued on the day, it may be more significant implications for price action.

BTC/USD saw two-year lows just under $16,000 in the FTX aftermath, levels which at the time sparked mass calls for a trip to $12,000.

“A retest of $19-$20k Bitcoin (200DMA zone) would be very appropriate here,“ Venturefounder wrote in a Twitter thread.

A further post argued, “Holding the $19-20k during this correction would be the first confirmation that $16k was the Bitcoin cycle bottom.“

BTC/USD annotated chart. Source: Venturefounder/ Twitter

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Source : Cointelegraph.com