$45M in Bitcoin Longs Wiped Out When Price Briefly Dips Below $29K – Here’s Where BTC Heads Next
$41.5 million worth of leveraged long positions in the bitcoin (BTC) futures market were liquidated on Monday, the second-biggest daily long liquidation so far this month, according to CoinGlass.com.
The spike in long selloffs came as bitcoin fell nearly 3.5% to fresh one-month lows below $29,000.
BTC spot price was just above $29,000, with cryptocurrency investors/traders profiting after impressive performance this year amid a lack of new positive catalysts to drive further gains in the bitcoin market.
According to CoinGlass.com’s chart, almost $500 million worth of bitcoin long positions risk being stopped before BTC reaches $28,400.
But bears shouldn’t get too excited, as if Bitcoin were to suddenly surge back into the mid-$29,000s, this could trigger a short squeeze, with more than $600 million worth of leveraged short positions at risk of being stopped if the price of BTC were to climb back to $29,600.
This is where Bitcoin (BTC) could go next
Despite bitcoin’s slide on Monday, investors remain optimistic about the near-term trajectory of the cryptocurrency.
At least, that’s the takeaway from looking at how the bitcoin options markets trade.
The delta bias of 25% bitcoin options expiring in seven days was around 1.25, according to data presented by The blocksuggesting that investors continue to pay a premium for bullish call options expiring in seven days versus their equivalent bearish put option counterparts.
Meanwhile, the delta bias of 25% of options expiring in 30, 60, 90 and 180 days sit at even higher levels between 2 and 6, suggesting that option investors remain confident that bitcoin’s short-term trajectory remains generally to the upside.
That view meshes well with bitcoin’s technical outlook, which remains broadly positive.
While BTC price is at risk of falling below its 50-day moving average just above $29,000 this week, which would open the door for a test of support in the $28,500 area in the form of late-May highs and 100DMA, bitcoin is nearing a strong long-term resistance level.
That is the uptrend that started in late 2022 and has consistently supported price action so far this year.
With this week’s Fed meeting unlikely to push back too much on bets that this week’s hike will be the last of the central bank cycle, and with Bitcoin still benefiting from the tailwind of increased institutional interest in the wake of last month’s spate of Bitcoin ETF applications from Wall Street heavyweights, the case for a break below this year’s uptrend isn’t too strong at this point.
Any dip to the mid-$28,000s is likely to be seen as a good buying opportunity by many long-term bitcoin bulls.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.