The post Bitcoin (BTC) Faces Largest Decline in Four Months, Leading to $142 Million in Liquidations appeared on BitcoinEthereumNews.com.

Bitcoin (BTC) has been trading below the critical $61,000 mark in recent days. There have been substantial liquidations in the Bitcoin market, totaling over $142 million in the last 48 hours. This has led to notable shifts in market sentiment and trading behavior. Explore the recent downturn in Bitcoin’s market performance, the ongoing liquidations, and what this means for investors and traders. Bitcoin’s Continued Decline and Market Impact An in-depth look at Bitcoin on a daily chart unveils its most significant drop in over four months. Historically, BTC fell by 5.93% on August 2nd, plunging from about $65,293 to $61,418. This marked the steepest single-day fall since April. On August 3rd, it further dipped to approximately $60,674, representing a 1.24% decrease and falling below the critical $61,000 level. Analysis of Volatility and Market Sentiment As of the most recent analysis, Bitcoin continues to hover around $60,143, almost a 1% further decrease. This streak of declines has pushed Bitcoin past its support threshold, defined by the long-term moving average near $61,000. The Relative Strength Index (RSI) plunging below 40 underscores the growing bearish sentiment taking hold of the market. Surge in Long Liquidations Within the last week, the Bitcoin market has witnessed a surge in long position liquidations. On August 3rd, the liquidation volume climbed close to $60 million, with long positions making up around $43 million of that total. The subsequent trading session saw the total liquidation volume rise to approximately $83 million, with long liquidations representing about $67 million. This spike in liquidations is reflective of the fluctuating funding rates and heightened market uncertainty. Fluctuations in Funding Rates The funding rate has seen significant volatility, ending the latest trading session down at roughly 0.0036% from around 0.008%. However, within the last eight hours, the rate fluctuated, rebounding to about…

---

Filed under: News - @ August 4, 2024 11:58 pm