- Over $100 million in Bitcoin leverage was liquidated, raising correction concerns.
- Bitcoin price dropped to $57,043 before bouncing back to $57,800.
- ETF buyers haven’t panicked, but Mt. Gox repayments may add pressure.
More than $100 million in leveraged Bitcoin positions were liquidated in the past 24 hours, leading to concerns about a possible correction to $50,000. Data from CoinGlass revealed that $100.4 million in liquidations occurred, with $86 million coming from leveraged long positions.
Three days of negative price action caused Bitcoin’s value to drop from over $62,000 on July 2 to a low of $57,039 on July 4. Although Bitcoin has since recovered to trade above $57,799, it remains down by over 4.5% on the daily chart.
ETF Buyers and Market Trends
Monitoring Bitcoin’s performance around psychological levels like $60,000 is crucial in assessing its current cycle, particularly with the introduction of the first spot Bitcoin ETFs. Despite Bitcoin falling below the average realized buying price of $57,979 for ETF buyers, there has been no significant panic selling yet. Net total outflows on July 3 were $20.5 million, primarily from Grayscale’s ETF, according to Farside Investors.
Potential Market Pressures
The upcoming Mt. Gox repayments in early July could add further selling pressure. These repayments will distribute over $9.4 billion worth of Bitcoin to 127,000 creditors who have waited more than a decade to recover their funds.
The recent three-day price drop also caused Bitcoin to lose its 200-day trend line for the first time in 10 months. Popular crypto analyst Rekt Capital noted that a breakout is delayed until Bitcoin can break the downtrend that started in early June. This trendline remains a key focus for a potential shift in market direction.
Some traders believe the recent price drop might be a “shakeout,” a temporary dip followed by a quick recovery. However, analysts at 10x Research warn that Bitcoin could still revisit the $50,000 mark due to accelerating sell orders.
