Bitcoin’s $59K Support Breach Triggers $120 Million Futures Liquidation: Report

Renowned analytical platform CryptoQuant has provided some interesting insights into the Bitcoin market following a significant breakdown of the key $59,000 support level. In their latest work, analysisFollowing this news, approximately $120 million of longs in BTC/USDT perpetual futures were liquidated.

Source: Image provided cryptoquant

Although this liquidation value is significant, it is paltry compared to the previous support level breach at $59,000. CryptoQuant claims that this small-scale liquidation does not mean an actual “capitulation” will occur in the futures market.

Furthermore, the funding ratio indicator, which is an important indicator for measuring market mood, may show a negative funding ratio on the hourly chart. However, the magnitude of these negative values ​​does not indicate a significant increase in short selling activity, making interpretation of market sentiment more complex.

Source: Image provided cryptoquant

Downside to Bitcoin: Waiting for futures trading to subside

Typically, a market bottom requires a large amount of future market liquidations and a spike in short positions. Nevertheless, analysts argue that a clear “capitulation” event has not yet occurred in the futures market, due to the relatively small scale of long position liquidations and the absence of significant negative funding rates. ing. Therefore, further decline in Bitcoin price is expected.

However, analysts recommend less pessimism, citing on-chain cycle indicators such as MVRV that point to upside potential in the broader market cycle. Therefore, although caution is advisable, the current situation provides an opportunity for strategic investors to start accumulating Bitcoin, especially if there is a clear capitulation signal in the futures market.

Source: Image provided cryptoquant

Amidst the uncertainty, prevailing market conditions present sophisticated opportunities for astute investors. Sharp players who focus on the futures market like hawks and are armed with clear capitulation signals can profit from every move in the market.

Although the breakout of the $59,000 support level caused significant volatility within the Bitcoin market, the lack of a clear surrender signal shows the strength of market participants. Over time, strategic positioning and detailed assessment of market trends will surely become important in understanding the changing environment of Bitcoin trading.

Related Article


Leave a Comment