Bitcoin dips below $42k, liquidates majority of long positions across exchanges Bitcoin dips below $42k, liquidates majority of long positions across exchanges
The flagship crypto experienced $20.52 million in liquidations over the past 24 hours, roughly 85% of which were longs — equating to $17.48 million.
2 min read
Updated: Jan. 15, 2024 at 12:14 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin (BTC) fell below $42,000 for the second time over the weekend after failing to break above $43,100 amid subdued trading volumes after the ETF hype at the end of last week.
As of press time, BTC was trading at $41,870 on most of the large exchanges. The price is still above the key support level of $40,250; however, sell pressure continues to mount before the Asian markets open for trading.
The flagship crypto experienced $23.68 million in liquidations over the past 24 hours, roughly 85% of which were longs — equating to $20.11 million, according to CoinGlass data.
The liquidations largely affected traders on prominent exchanges, with Binance and OKX bearing the brunt, witnessing liquidations of $7.51 million and $5.26 million, respectively.
Sell the news
The approval and launch of spot Bitcoin ETFs initially led to a surge in Bitcoin’s price, reaching around $49,000. However, following the excitement, there has been a notable downturn in the price, partly due to market reactions typical of “sell the news” events.
This kind of market behavior often occurs when there is a build-up of anticipation for an event (like the launch of ETFs), followed by a quick sell-off after the actual event.
From a technical analysis perspective, Bitcoin was showing signs of buyer exhaustion and increased selling pressure. Analysts observing indicators like the Exponential Moving Average (EMA) noted that Bitcoin was trading at key resistance levels, suggesting a potential price correction.
These technical signals can often lead to a self-fulfilling prophecy as traders and investors react to them.
ETF issuers buying the dip
Meanwhile, the ETF issuers have reportedly bought 23,000 BTC amid the downturn, with BlackRock accounting for 11,500 Bitcoin. It is unclear whether the interest in these products will continue to gain traction or if the weekend lull is a precursor to the coming days.
Experts believe that if these institutions continue scooping up Bitcoin at similar levels, it will likely lead to a supply crunch within a few months and could push the price to new highs.
However, the market has been wary of outflows from Grayscale’s GBTC ETF, whose holders have been underwater since 2022 and are likely looking for an opportunity to sell as they are made whole.
Bitcoin Market Data
At the time of press 12:14 am UTC on Jan. 15, 2024, Bitcoin is ranked #1 by market cap and the price is down 2.04% over the past 24 hours. Bitcoin has a market capitalization of $822.13 billion with a 24-hour trading volume of $17.72 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 12:14 am UTC on Jan. 15, 2024, the total crypto market is valued at at $1.65 trillion with a 24-hour volume of $48.87 billion. Bitcoin dominance is currently at 49.71%. Learn more about the crypto market ›
Mentioned in this article
Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
Latest Bitcoin Stories
Featured Story
Advertise Here
In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
