Bitcoin’s insane plunge seen early this morning has shown no signs of slowing down as the benchmark cryptocurrency’s bulls seem to disappear. This intense downtrend has now cut as deep as $4,800 and has put BTC at jeopardy of seeing a movement down to its post-2017 crash lows of $3,300.
This latest movement to sub-$5,000 has left a trail of destruction in its wake, leading another $120 million in long positions to be liquidated in a mere matter of minutes.
Analysts are now noting that there is barely any buying pressure between Bitcoin’s current price and $4,000 – suggesting significantly further downside could be imminent.
Bitcoin Crashes as Buying Pressure Disappears
At the time of writing, Bitcoin is trading just below $5,000, which marks a massive decline from daily highs of nearly-$8,000 that were set around this time yesterday.
This has led many analysts to note that the cryptocurrency could be poised to see significantly further near-term downside, as the unprecedented nature of this ongoing movement has baffled investors and has led BTC’s buying pressure to dissipate.
Hsaka, a popular cryptocurrency analyst and trader on Twitter, spoke about the current state of Bitcoin in a recent tweet, pointing to an order book showing that there is very little support between BTC’s current price and $4,000.
E M P T Y$BTC pic.twitter.com/mcjmqbDdXJ
— Hsaka (@HsakaTrades) March 12, 2020
Because of the massive number of sell orders being placed at $5,000 and the lack of buyers to absorb this pressure, it is highly probable that the cryptocurrency will see significantly further downside in the days and weeks ahead.
BTC’s Massive Decline Leads to Wake of Liquidations Totaling at Nearly $800m
One byproduct of this ongoing selloff is the fact that $120 million worth of Bitcoin long positions on BitMEX were liquidated in this latest decline, according to data from Skew.
This comes close on the heels of the $665 million worth of long positions that were liquidated earlier this morning when Bitcoin plummeted to lows of $5,200 before rebounding to $6,200.
“$665 million bitcoin longs were liquidated just now on BitMEX alone, I repeat, $665 million,” Joseph Young, a popular market commentator, noted in a recent tweet.
$665 million bitcoin longs were liquidated just now on BitMEX alone, I repeat, $665 million
— Joseph Young (@iamjosephyoung) March 12, 2020
This puts the total dollar value of liquidations seen today at roughly $785 million, which is unprecedented.