- BTC futures contracts long liquidation reached 8 month high on Okex.
- BTC’s price has tumbled around 7% in the last 24 hours.
- The daily 9 EMA line is looking to cross below the 20 EMA line.
Blockchain analysis platform Glassnode released new data regarding futures contracts for the crypto market leader Bitcoin (BTC), showing that its long positions were liquidated.
📈 #Bitcoin $BTC Futures Contracts Long Liquidations just reached a 8-month high of $84,934,697.05 on #Okex
Previous 8-month high of $48,630,183.66 was observed on 05 May 2022
View metric:https://t.co/sC7s1FAoHZ pic.twitter.com/aMlTgLmxrX
— glassnode alerts (@glassnodealerts) August 19, 2022
According to the data, the number of futures contracts long liquidations has just reached an 8-month high of around $84,934,697.05 on the crypto exchange platform Okex.
Meanwhile, the previous 8-month high liquidation happened on May 5, 2022, when BTC had long liquidation of $48,630,183.66. This was the day when the global crypto market crashed after the Terra-Luna collapse. At that time, BTC was trading at $40,000, which then plunged to $31,600 on June 8.
The liquidations of the long positions follow the recent selloff seen in the crypto market that has seen all of the top 10 cryptos by market cap post a loss over the past 24 hours. As a result, BTC is now trading at $21,736.62 after a 7.54% drop in price over the last day according to CoinMarketCap.
As can be seen from the daily trading chart of BTC/USDT, BTC’s price has been in a downward trend for the last week. Following its cross below the 9 EMA line, BTC’s price met with a surge of sell pressure that has taken its price down to its current level.
Things are looking bearish for BTC since the MACD line has recently crossed below the MACD signal line. Furthermore, the 9 EMA line seems to cross below the 20 EMA line. If this happens, the bearish thesis will be confirmed and BTC’s price will look to test the support level at around $21,200.
However, bulls can still salvage the situation with BTC if they are able to narrow the size of the current daily candle’s body and then elevate BTC’s price above the 9 and 20 EMA lines in the next candle.
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