Bitcoin price falls below $39,000 as indicators suggest risk of a deeper correction, according to Bitfinex
The bitcoin price has fallen below the $39,000 mark, causing a significant decline in short-term holder profits, according to Bitfinex.This market shift could result in increased sell pressure from the short-term holder cohort, analysts added.
According to Tuesday's Bitfinex Alpha Report, bearish sentiment appears to be prevailing in the market. "The next crucial price levels for bitcoin that could provide support are estimated to be between $38,000, which is close to the short-term holder realized price for bitcoin at $38,307, and $36,000," the report stated.
Bitfinex analysts tracked metrics for unrealized and realized profit and loss for short-term bitcoin holders, identifying that over half of the profits accumulated by this cohort have been wiped out. "Many holders, especially those who acquired bitcoin less than a month ago, are now exiting the market at a loss," the analysts added.
Market volatility causes spike in liquidations
As a result of the heightened market volatility , total liquidations of leveraged crypto positions in the past 24 hours have surpassed $330 million.
The majority of the liquidations involved long positions, leading to a loss of over $290 million, while short positions contributed only around $39 million to the total liquidations, according to Coinglass data.
The bitcoin price has dropped more than 4.5% in the past 24 hours, falling below the $39,000 mark. The world’s largest cryptocurrency by market capitalization is now trading at $38,894 as of 5.17 a.m. ET, according to The Block’s Prices Page.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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