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Traders Suffer Nearly $30M in Bitcoin (BTC) Long Liquidations Within 4 Hours

2 mins
Updated by Ryan Boltman
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In Brief

  • The price of Bitcoin fell from the $31,300 area to $29,300 in just 4 hours.
  • BTC traders lost almost $30 million in long liquidations.
  • The record liquidations of long positions occurred between May 9-12 and reached $635 million.
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In a 4-hour period, Bitcoin traders experienced $29.22 million in long futures liquidations. This is another significant number of liquidations triggered by similar price action as on June 1.

On the night of June 6-7, the BTC price collapsed and traders lost nearly $30 million due to the liquidation of long positions. The liquidation peak was a short 4-hour period in which the Bitcoin price fell from the $31,300 area to $29,300.

Source: Coinglass

This is the largest short-term liquidation of long positions since June 1. Then, as a result of similar declines in the BTC price, traders lost a total of $87.97 million over a 12-hour period (blue circle). In contrast, previously large short-term liquidations occurred on May 26, when more than $40 million in long positions were lost in 4 hours (red circle).

However, today’s liquidations, despite running into the tens of millions of dollars, are still small compared to the losses in the first half of May 2022. On a long-term chart going back to March 2022, we can see that the peak of long liquidations occurred between May 9-12. At that time, traders collectively lost a record $635 million in 4 days.

Source: Coinglass

BTC price in the context of long liquidations

The record level of long futures liquidations was caused by the fall of Bitcoin from the long-term support area of around $34,500 to the bottom at $26,700 between May 9 and 12. In turn, the current declines are the result of the consolidation of the largest cryptocurrency in the range of $28,600-$31,800, which has been in place since May 13 (black lines).

BTC chart by Tradingview

Also, worth noting are the two fakeouts that ended up returning to the range (blue circles). Moreover, the consolidation is taking place with weakening trading volume (blue line).

Therefore, a resolution of the range can be expected around mid-June. Two possible scenarios are a bearish retest of the resistance area at $34,500 or a continuation of declines to retest the May 12 low.

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Jakub Dziadkowiec
PhD and an assistant professor at an international university in Lublin, Poland. Spent 10 years studying philosophy of nature and sport science. An author of 4 books and two dozens of scientific articles. Now, he is using his mind for the benefits of the cryptocommunity. Technical analysis enthusiast, Bitcoin warrior, and a strong supporter of the idea of decentralization. Duc in altum!
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