Bitcoin dropped to as low as $11,159 on spot exchanges like Coinbase Wednesday. The fall was exacerbated by long-oriented derivatives traders on exchanges like BitMEX. That platform experienced $9 million in sell liquidations in one hour as prices fell, the equivalent of a margin call in the cryptocurrency world.
Alex Mascioli, head of institutional services at crypto brokerage Bequant, says long traders were convinced bitcoin’s price would surpass 2020 highs, but instead were wiped out. “Bitcoin still needs to break above its previous high at $12,400 to have enough serious momentum to have a chance of retesting previous highs,” he said.
There is a chance that next time bitcoin hits that price level it could head into higher territory, approaching 2020 highs around $12,475, Mascioli added. “For now, $12,400 is the most important resistance level the bulls must take out - the technicals appear as if the bulls may retest this level in the next week.”
Alex Mascioli, head of institutional services at crypto brokerage Bequant, says long traders were convinced bitcoin’s price would surpass 2020 highs, but instead were wiped out. “Bitcoin still needs to break above its previous high at $12,400 to have enough serious momentum to have a chance of retesting previous highs,” he said.
There is a chance that next time bitcoin hits that price level it could head into higher territory, approaching 2020 highs around $12,475, Mascioli added. “For now, $12,400 is the most important resistance level the bulls must take out - the technicals appear as if the bulls may retest this level in the next week.”
