Bitcoin keeps liquidating longs as BTC price action gives up $22K support

bitcoin (BTC) Traders remain sensitive to even small price movements as data shows increasing sell-offs.

As BTC/USD approaches $21,600 on March 9, those who are long BTC are seeing positions evaporate.

Longs start to fade with BTC at three-week lows

Despite the consensus forming Around Bitcoin retesting $20,000, small price changes are still weighing on traders.

According to data from the monitoring resource purse$24.4 million worth of BTC longs were liquidated on March 8 alone, the highest in almost a week.

This coincided with the course of BTC/USD to three week minimums, leaving $22,000 as support. At the time of writing, the downtrend continues, while the selloffs for the day remain negligible.

Including altcoins, on March 8 it liquidated $95 million in long positions and another $15.4 million in short positions. More data from the on-chain analytics firm glass node captured the dominance of long versus short selloffs.

Commenting on the action, Filbfilb, co-founder of the Decentrader trading suite, argued that it was no surprise that overexposed long positions were feeling the heat.

"Makes sense to kill off the majority who yearn for price direction," part of the Twitter comment. fixed.

An accompanying chart showed increasing liquidations of leveraged positions.

Research warns of "liquidity crunch"

Like Cointelegraph reportedBitcoin price action remains comparatively flat despite sell-off behavior.

Related: BTC May Need To Drop To $19.3K To Cool Bitcoin Profit Taking – New Data

February became the least volatile month on record in terms of opening and closing prices on monthly time frames.

However, for financial commentary resource The Kobeissi Letter, this served as a warning in itself, and not just for Bitcoin.

Analyzing price action after a substantial sell-off event on March 3, Kobeissi forecast a "liquidity crisis" that spreads through macro assets.

“Net liquidations in crypto markets topped $200 million in 1 hour. Since then, Bitcoin has traded completely flat and liquidity is gone. Imagine what will happen to the broader markets once liquidity runs out” , wrote.

Meanwhile, he described such a crisis as "the biggest risk for the markets right now."

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