Bitcoin (BTC) Price Sheds Over $2K in Few Minutes Liquidating Over $600M in Longs

Bitcoin (BTC) price experienced increased volatility in a short time frame that saw the asset drop from $59,700 to below $56 in a few minutes. Consequently, over $600 million was liquidated. Meanwhile, Bitcoin price has stabilized around $58k at the time of reporting.

The sudden dip in Bitcoin (BTC) price carried with it almost the entire altcoin market as traders fled the highly volatile market. Worth noting, the stablecoin market led by Tether (USDT) experienced increased demand that reciprocated to high trading volume.

According to market data provided by CoinGecko, USDT had a trading volume of approximately $101 billion with a market capitalization of around $40.7 billion.

Short-term traders freed to the stablecoin market to protect their positions from increased volatility. However, the increased volatility in the Bitcoin price made a dismal effect on the long-term investors. On the weekly chart, Bitcoin price is still bullish although trapped in a bullish pennant in the past few weeks.

Bitcoin (BTC) Price from Different Perspectives

According to a post by Cointelegraph, increased volatility in Bitcoin price in the past 24 hours has resulted in a total liquidation of approximately $1 billion. Citing popular crypto trader Plan B tweets, Cointelegraph noted that similar liquidations have occurred in the past to weed out weak traders.

“Beautiful stop loss hunting .. again. Now that all leveraged longs are liquidated, we finally have room for breaking $60K in April,” Plan B noted. Further explaining to one of his followers, he noted that Bitcoin will now be in stronger hands after the shakeout. “Yeah, you would expect that people learn and don’t do leveraged longs (futures). On the other hand, this weeds out weak hands and makes the hodler base stronger,” he added.

Bitcoin’s market capitalization stands at $1,083,871,477,357 while its 24-hour trading volume stands at $54,494,493,307. The asset has a crypto market dominance of 58% followed by Ethereum with 11.2%. Bitcoin price is now up over 800% since the famous March Black Thursday. Besides, the asset has jumped approximately 28% in the past 30 days.

From a technical point of view, Bitcoin bulls are stronger than bears on a long-term basis. The asset has been making higher highs and higher lows on the weekly chart, a characteristic of a rising trend. Once Bitcoin price breaks out of the current hurdle, analysts expect the asset to rally towards the next between $68k and $73. However, Bitcoin price as has done in the past can surprise by rallying beyond. Moreover, Bitcoin options contracts that closed last week gave room for the asset to rally further in the coming weeks.