September Leaves Behind Trail Of Blood, Bitcoin Long Liquidations
September 23 2021 - 6:00PM
NEWSBTC
After what looked to be a month of prosperity following the August
bull run, Bitcoin has now entered into an era of increasingly
bearish signals. The asset had seen a number of rallies that pushed
it over two-month highs, successfully breaking above the $52K
resistance range on a number of occasions. Throwing the entire
market into a stretched-out period of positive sentiment. September
has now come with its own unique set of problems for the digital
asset. Bitcoin price has been suffering since the beginning of the
month, ushered in with a flash crash that rocked the market only a
week into September. The market continues to suffer from the
aftershock of this flash crash, which has left a trail of blood in
the market, and led to massive liquidations. Related Reading
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Price Crash Leads To Sell-Offs In only a matter of days, the price
of bitcoin has fallen from $47,000 to $40,000, which triggered
liquidations in the market. The long liquidations totaled up to the
tune of $860 million across exchanges. The liquidations took place
over two days when the price of the digital asset had inevitably
fallen to $40,000 on Tuesday, September 21st. Although significant,
the liquidations, which were spread across two days, still sat
below the sell-offs seen following the September 7th crash. Related
Reading | Did Bitcoin Really Experience A Flash Crash Down To
$5,400? Monday marked the beginning of the liquidations as the
market saw $470 million long positions liquidated. And the
following Tuesday, a total of $390 million long positions were
liquidated as well. At this point, the price of bitcoin had hit
levels not seen since mid-August. And as market sentiment shifted
into the negative, the price continued to plunge. BTC longs
liquated on Monday and Tuesday add up to $860 million | Source:
Arcane Research Current sell-off volumes have remained beneath the
$1.2 billion sell-off in early September, suggesting that this
current sell-off is more organic than previous ones. Also, it shows
that the current market is more influenced by spot activity
compared to the derivatives market. September And Its Chokehold On
The Market September has historically come with challenges for the
crypto market. So the crash that rocked bitcoin and the entire
market at the beginning of the month is on-brand. Crashes with at
least a 17% value loss have happened in September for the past four
years and it looks like 2021 has fallen in line with this trend.
However, the end of September has always come with better forecasts
for the following month. Chart analysis show crashes in the month
precede recoveries that put the market on course to regain its lost
value. Setting the market up for another bull run. BTC price
trading north of $43K | Source: BTCUSD on TradingView.com The price
of BTC has now recovered above its Tuesday’s lows, which saw the
digital asset plunge below $40K. Bitcoin is currently trading above
$42,000 at the time of writing. While the total market cap has
fallen below $800 billion. Featured image from Bitcoin News, charts
from Arcane Research and TradingView.com
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