"Everyone must be surprised to see BTC suddenly drop like that, did anyone expect it to happen?
Immediately after breaking $69,000, the price of cryptocurrency king Bitcoin (BTC) fell back to $59,398 as the Binance order book showed large sell orders where over 300 BTC worth $20 million were sold at $69,000 and 500 BTC at $70,000.
Through observation, the action taken by the price of BTC has triggered the elimination of severe leverage that liquidated over $1.1 billion of derivative trading positions across all digital assets over the past 24 hours and $870 million of positions whose liquidations are long.
Liquidations occur when crypto exchanges close leveraged trading positions due to losses or all of the traders' initial money after they fail to have sufficient funds to cover losing positions.
According to Reflexivity Research co-founder Will Clemente, yesterday's events reminded him of BTC's reaction during Thanksgiving 2020 where the price was expected to reach $20,000 but reached $19,500 before briefly falling to $16,000.
But historically, BTC tends to rise for the next few days following in 2020, its price went from $20,000 to $24,200 in 48 hours and it didn't fall below $20,000 again until June 2022 in the middle of a bearish market.
So here it can be seen that BTC currently does not have the momentum needed to emulate the rise in 2020 as significant sell orders have been added at $70,000 and $71,000 on Binance.
As of this writing, BTC price has plunged by 7.31% to $63,562 in the last 24 hours with a market cap of over $1 trillion but is still up 11.63% over the last week.
