Despite Bitcoin falling below the realized price of ETF buyers, ETF holders did not panic sell, but a deeper correction may still be on the horizon.
Over $100 million worth of leveraged Bitcoin positions were liquidated in the past 24 hours, raising concerns about a potential drop to the $50,000 mark. According to CoinGlass data, Bitcoin liquidations reached $100.4 million, with over $86 million in leveraged long positions being liquidated.
These liquidations were triggered by three consecutive days of negative price action, which saw Bitcoin’s price drop from over $62,000 on July 2 to a low of $57,043 on July 4, according to CoinMarketCap data. Bitcoin has since bounced back to trade above $57,800 as of 9:40 am UTC but is still down over 4.5% on the daily chart.
Monitoring Bitcoin’s performance around key psychological levels like $60,000 is crucial to understanding the progress in the current Bitcoin cycle, which is unique due to the introduction of the first spot Bitcoin exchange-traded funds (ETFs).
Summary Review: While the recent liquidations and price drops are concerning, the behavior of ETF investors suggests that panic selling has not yet occurred. However, the market may still face further corrections.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
