Bitcoin price taps 3-week lows as SEC fears liquidate $250M of crypto longs

Bitcoin (BTC) fell to bearish target zones on February 10 as the bulls failed to hold important support above $22,000.

1-day BTC/USD candlestick chart (Bitstamp). Source: Trading View

Cryptocurrency destruction rises as BTC price loses $22,000

Data from Cryptooshala Markets Pro and trade view showed that BTC/USD fell to $21,633 on Bitstamp.

The pair has reacted poorly to concerns from US regulators but has already faced bearish sentiment with traders anticipating a retest at $21,000 or even lower.

At the time of writing, Bitcoin is trading at around $21,800, down 7% from February.

“Is the bear market back or are we just having a slight correction?” Cryptooshala contributor Mikael van de Poppe, founder and CEO of trading firm Eight, asked in a day.

Annotated BTC/USD chart. Source: Crypto Tony/Twitter

Some were shorted as BTC price action was in line with expectations, with popular Crypto trader Tony looking at $21,400 as a potential bounce zone if losses continue to materialize.

“Profits on the short position are good and my next target is the support cluster at $21,400. If we see a $22,300 retest, this could be your chance to get in after a failed retest,” he said. wrote in the comments part next to the explanatory diagram.

Thus, those who remained in long positions felt intense pain overnight. According to According to data resource Coinglass, Bitcoin long liquidations alone totaled $64.6 million as of Feb. 9.

BTC liquidation chart. Source: Coinglass

On-Chain College, member of the CryptoQuant analytical platform, marked that they included $24.3 million in a single hourly candle, the most since the FTX crash in early November 2022.

Annotated BTC/USD chart. Source: On-Chain College/Twitter

On February 9, $254 million of long positions were liquidated, including altcoins.

Analyst looks for ‘confirmation’ of $16,000 low

Looking beyond immediate price action, another CryptoQuant contributor, Venturefounder, has focused on whether or not bitcoin has indeed hit a macro bottom.

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If BTC/USD keeps the 200-day moving average (DMA) around $20,000 – or even $19,000 – as support, it will argued during the day, this can have more significant implications for price action.

BTC/USD hit a two-year low of just under $16,000 after FTX closed, levels that at the time sparked massive calls for a fall to $12,000.

“Bitcoin Retest $19K-$20K (200DMA Zone) Would Be Very Appropriate Here,” Venturefounder wrote in a Twitter thread.

The next post claimed, “Holding $19k-$20k during this correction would be the first confirmation that $16k was the bottom of the Bitcoin cycle.”

Annotated BTC/USD chart. Source: Venturefounder/Twitter

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cryptooshala.

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