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Nearly $20 Million of BitMEX Longs Liquidated As Bitcoin Tumbles Below $8,800

Nearly $20 Million of BitMEX Longs Liquidated As Bitcoin Tumbles Below $8,800

Since NewsBTC’s final market replace, the Bitcoin market has continued to flash indicators of weak point.
After managing to briefly reclaim $9,000, the cryptocurrency began to plunge simply minutes in the past, falling as little as $8,675 — 4% decrease than the place BTC began the day and about 15% beneath the May highs.
Bitcoin worth chart from TradingView.com
This newest leg decrease has resulted in a liquidation occasion on margin-enabled exchanges, with this fast drop catching most merchants off guard.
According to Skew.com — a web site monitoring crypto derivatives — simply shy of $20 million price of lengthy positions have been liquidated over the previous hour, including to the tens of millions extra liquidated earlier at this time.
May Get Worse for Bitcoin Bulls
Unfortunately, Bitcoin is ready to fall even decrease after this transfer, analysts say.
One outstanding dealer shared the chart beneath, which reveals that Bitcoin’s weekly chart is printing a textbook “tweezers” prime on the weekly chart, marked by two related candles in succession. Add a rejection at a key resistance degree, $10,000, and the cryptocurrency is purportedly primed to maneuver decrease.
Chart from dealer “Chonis” (@MassiveChonis on Twitter).
Also bearish are on-chain alerts.
Five of seven of IntoTheBlock’s main market alerts — Smart Price, Net Network Growth, In The Money, Bid-Ask Volume Imbalance, and Large Transactions — are at present in “bearish” territory.
Fundamental Factors Still Favor Bulls
Even nonetheless, the basics purportedly favor Bitcoin bulls regardless of the latest drop.
For one, the Chinese yuan has not too long ago begun to underperform the U.S. greenback as soon as once more. The international foreign money is falling decrease after President Trump remarked that he and Washington would react “very strongly” to new mainland Chinese authorities proposals about Hong Kong.
Analysts say that this could possibly be a lift to Bitcoin. Chris Burniske, a associate at Placeholder Capital, defined:
“If China’s CNY continues to weaken in opposition to USD, then we might have a 2015 and 2016 repeat, the place BTC energy coincided with yuan weak point.”
Adding to this, Mike McGlone — senior commodities strategist at Bloomberg Intelligence — famous that there’s development within the variety of energetic Bitcoin addresses and within the futures market. This suggests rising retail and institutional adoption of cryptocurrency.
Featured Image from Shutterstock

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