Bitcoin Update: $120 Million Futures Liquidated As Price Takes A Beating

Christian Encila

1 year ago

3 mins read

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The latest fall in Bitcoin’s price below the $59,000 support level has caused volatility in the bitcoin market. Although the price decrease set off liquidations in futures markets, experts caution that in the absence of a full-fledged market capitulation, a more notable loss may be on storey.

Measured Retreat, Not Mass Exodus

After the price decline, a bitcoin analytical tool called CryptoQuant revealed about $120 million in liquidated long positions—bets on price increases. This liquidation is notable, but unlike past sell-offs at the same support level it does not indicate a terrified flight from investors. Investors seem to be approaching things more sensibly, implying a probable short-term fix instead of a long-term bad market.

$BTC Futures Market Not Yet Signaling Capitulation

“Given the relatively small amount of long position liquidation and the lack of dramatic negative funding ratios, we believe that a ‘capitulation’ has not yet occurred in the futures market.” – By @MAC_D46035

Link 👇… pic.twitter.com/xqArLQiITf

— CryptoQuant.com (@cryptoquant_com) May 2, 2024

A Glimmer Of Hope For Long-Term Investors

Though the short-term view seems wary, long-term investors have cause for hope. Analyzing data straight on the Bitcoin blockchain, on-chain measures give signs of a possible future upsurge.

Metrics such as MVRV (Market Value to Realized Value) point to an increasing possibility in the cycle of the bigger market. This data enables strategic investors to see the present as a possible purchase point, especially in case of a notable future market capitulation event.

Bitcoin price action in the last week. Source: Coingecko

Navigating The Bitcoin Maze: Data-Driven Decisions Are Key

Investors find a difficult task in the present volatility of the market. Making wise selections depends on an awareness of market attitude. Indicator of future contract sentiment, the financing rate has occasionally entered negative territory.

BTCUSD trading at $59,167 on the daily chart: TradingView.com

Historically, this points to a higher presence of bears—investors expecting a price drop—than of bulls. The negativity hasn’t reached the extremes seen in earlier major downturns, hence the general attitude is rather unknown.

Bitcoin’s Long-Term Narrative Remains Unwritten

Success in this fast-paced environment depends on closely observing futures markets for indications of surrender and studying other market indicators such the financing rate. Sharp investors with a strategic awareness of market dynamics are probably going to gain from any future movement.

Although short-term volatility resulting from Bitcoin’s recent price decline is still underwritten, the long-term narrative is yet unknown. Although the next weeks may try investor will, individuals who can examine market data and make smart judgments could be in a position to seize present possibilities.

Featured image from Pixabay, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.