Bitcoin Drops Below $59,000 as Bulls Record $230 Million Liquidations

The crypto market is in a bearish phase today, with Bitcoin falling below $59,000, currently trading around $57,888 as negative investor sentiment increases.

The fear of potential sale pressure on Bitcoin triggered by the proposed Mt. Gox BTC repayments and possible miner sales may have contributed to the onslaught.

BTC's decline also influenced altcoin prices, resulting in a significant drop in Ether and Solana prices. The forerunner meme coin Dogecoin (DOGE) also inherited the broader market depression, down 8% in the last 24 hours.

Bitcoin Retracement Results in Massive Liquidations as Crypto Market Bleeds

Meanwhile, Bitcoin Futures traders betting on higher prices suffered losses exceeding $230 million in 24 hours.BTC and ETH-tracked futures recorded $60 million in long liquidations each, the highest since June. Binance accounted for $110 million of liquidations, the highest amount on crypto exchanges.

Investment products trading Solana, Dogecoin, XRP, and Pepe coin prices saw $4 million in losses.

For context, liquidations happen when an exchange forcefully exits a trader's leveraged position due to partial losses. These liquidations signal price volatility in the market and bearish investor sentiment.

Why is Bitcoin in Decline Despite Bullish Predictions?

Thinking Crypto host Tony Edward noted that the $9 billion Mt. Gox repayment schedule has influenced the market negatively.

Although these Mt. Gox payments will come in batches, they still carry the risk of massive selling pressure. However, Edward said the ongoing retracement is not unusual, and the focus should be on the broader crypto market dynamic.

Edward recalled Bitcoin's impressive performance following the Spot ETFs launch before the halving event in April. So, he believes that a slowdown phase for Bitcoin was inevitable as it aligns with macroeconomic trends. He believes the ongoing retracement is necessary for further Bitcoin price ascent.

While the macroeconomic scene is mainly positive, Bitcoin's price action contradicts the positive environment. According to Edward's analysis, the impact of the positive economic outlook on Bitcoin has been delayed.

So, Edward focuses on the $58,000 support level identified by a Glassnode report as a critical point.

Notably, at the $58,000 price level, short-term BTC holder losses will increase. Also, Edward remarked that BTC's drops below the $58,000 support will signal a lower correction. Nevertheless, he believes the cycle is near the bottom and will witness a rebound soon.

What Next for Bitcoin?

BTC has formed a third consecutive red candle on the daily chart as the sellers dominate. Bitcoin faced rejection at the $60,000 price level, leading to a decline below $57,000. So, the $56,800 support will prove critical to prevent further decline for BTC to $55,000.

However, BTC is trading below the Parabolic SAR indicator and exhibiting a bearish signal. This implies that more investors are shorting their BTC tokens and anticipating further decline.

In addition, the RSI indicator is in the oversold zone and displays a value of 28.85. The RSI indicator is still descending, hinting at a further decline. Therefore, Bitcoin will likely decline to $55,000 in the coming days before the buyers begin the recovery phase.

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