In a 4-hour period, Bitcoin traders experienced $29.22 million in long futures liquidations. This is another significant number of liquidations triggered by similar price action as on June 1.
On the night of June 6-7, the BTC price collapsed and traders lost nearly $30 million due to the liquidation of long positions. The liquidation peak was a short 4-hour period in which the Bitcoin price fell from the $31,300 area to $29,300.
![](https://wordpress-1016567-4521551.cloudwaysapps.com/wp-content/uploads/2022/06/traders-suffer-nearly-30m-in-bitcoin-btc-long-liquidations-within-4-hours.jpg)
This is the largest short-term liquidation of long positions since June 1. Then, as a result of similar declines in the BTC price, traders lost a total of $87.97 million over a 12-hour period (blue circle). In contrast, previously large short-term liquidations occurred on May 26, when more than $40 million in long positions were lost in 4 hours (red circle).
However, today’s liquidations, despite running into the tens of millions of dollars, are still small compared to the losses in the first half of May 2022. On a long-term chart going back to March 2022, we can see that the peak of long liquidations occurred between May 9-12. At that time, traders collectively lost a record $635 million in 4 days.
![](https://wordpress-1016567-4521551.cloudwaysapps.com/wp-content/uploads/2022/06/traders-suffer-nearly-30m-in-bitcoin-btc-long-liquidations-within-4-hours-1.jpg)
BTC price in the context of long liquidations
The record level of long futures liquidations was caused by the fall of Bitcoin from the long-term support area of around $34,500 to the bottom at $26,700 between May 9 and 12. In turn, the current declines are the result of the consolidation of the largest cryptocurrency in the range of $28,600-$31,800, which has been in place since May 13 (black lines).
![](https://wordpress-1016567-4521551.cloudwaysapps.com/wp-content/uploads/2022/06/traders-suffer-nearly-30m-in-bitcoin-btc-long-liquidations-within-4-hours.png)
Also, worth noting are the two fakeouts that ended up returning to the range (blue circles). Moreover, the consolidation is taking place with weakening trading volume (blue line).
Therefore, a resolution of the range can be expected around mid-June. Two possible scenarios are a bearish retest of the resistance area at $34,500 or a continuation of declines to retest the May 12 low.
For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here.
The post Traders Suffer Nearly $30M in Bitcoin (BTC) Long Liquidations Within 4 Hours appeared first on BeInCrypto.
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