Bitcoin ($BTC) has recently gone through a severe downturn on Monday, leading to notable liquidations. As the latest market data reveals, the Bitcoin ($BTC) long positions experienced a $269.36M in liquidations at the start of the week. This major sell-off indicates the panic among the traders while reassessing strategies for the next moves, as Bitcoin’s price has fallen below the $112K mark. Hence, as the bearish sentiment rises, there is speculation for further price decline.
$BTC’s ATH Reversal Triggers Market Long Liquidations
After claiming its new ATH of $124,500 on August 14, Bitcoin ($BTC) has continuously been plunging. Although the recent dovish remarks expressed by the Fed Chair Jerome Powell boosted Bitcoin’s price slightly, its further dip has resulted in huge liquidations. Overall, the crypto market has seen a staggering $942.08M in liquidations over the past 24 hours.
Long Bitcoin Liquidations Reach $269.36M
Interestingly, the long positions accounted for a major $830.27M of that cumulative amount. Additionally, Bitcoin’s liquidations in this respect reached $269.36M, with longs occupying $224.27M. In line with the liquidation data, significant buy interest is concentrated within the $110,500-$109,700 range.
Increased Volatility Raises Speculations of Further Dip to $100,000 and Below
Apart from that, the deeper bids are reportedly emerging around the $108,000 mark. This highlights the possibility of a further slump and liquidity outflows before a noteworthy recovery. As per the market onlookers, if Bitcoin fails to maintain its price above the $111,900 spot, it could lead to a revisit to $100,000. At the same time, some even anticipate a retest of $95,000.
Analysts Deem Current Downturn as Key Entry Point for Long-Term Investors
However, irrespective of the ongoing bloodbath, some analysts remain optimistic. In this respect, Michael van de Poppe deems this decline as a notable entry point for long-term purchasers. In the meantime, the market participants are keenly looking for Bitcoin’s ($BTC) potential price recovery amid the growing uncertainty.
