Coinglass data shows that the cryptocurrency market has seen $197 million in liquidations in the last 24 hours. Bitcoin, Ethereum, and Bitcoin Cash have experienced an ongoing decline over the past week, down by 7.53%, 12%, and 16% respectively.
The decline is partly due to Mt Gox exchange’s movement of Bitcoin worth around $2.7 billion, as it prepares to start paying creditors later in July.
As of July 5, liquidations affected 230,541 traders across centralized exchanges. Bitcoin led the liquidations, the majority of which were long positions.
Bitcoin will keep falling
Bitcoin formed a giant double-top chart pattern. The first one was smaller, occurring between March and April at around $72,200, while the second occurred in June. Bankless Times expects the selloff to continue to about $44,000 in the near term, especially if the flagship crypto loses key support at $50,000. Bitcoin may form a death cross, as it crashed below the 200-day moving average yesterday.
Ethereum also underwent a significant decline. As of July 5, positions worth $163.4 million were liquidated. Again, most of them were long positions. Ether is trading below $3,000 at the time of writing.
Ethereum’s price surged on the news of the pending approval of ether ETFs, which didn’t happen by July 4 as expected. It is expected to decline further, with TradingView technical indicators showing a strong sell.
Due to Bitcoin Cash’s smaller investor base, it might face stronger selling pressure. Both the 50- and 200-day moving averages are trending downward.
Volatility does not change Bitcoin’s “core thesis”
Ben Caselin, CMO of VALR, does not believe momentary market volatility will change Bitcoin’s “core thesis.” He said in a recent interview with The Block that we might expect prices around $50,000 in the near term, but current price movements only concern short-term investors. However, this view is at odds with the primarily long-position liquidations.
The legacy of Mt. Gox
According to data provided by Arkham Intelligence, now-defunct exchange Mt. Gox moved Bitcoin worth $2.71 billion to a wallet address, which redistributed the funds thereafter. At the end of May, Mt. Gox moved Bitcoin worth approx. $840 million at the time into a new wallet address.
