$179,3 million worth of BTC “Long” liquidated on BitMEX after BTC drop $7.350

Bitcoin finally dropped to the $7,600 in minutes cause the key $7,800 didn’t hold. The strong downtrend caught several long sellers off guard, resulting in liquidation of $179,3 million long positions in BitMEX.

BTC/USDT chart | Source: Tradingview

$180 Million Worth of BTC Longs Liquidated on BitMEX

Over the past week, Bitcoin has faced a slow grind down to the $8,000. Currently, BTC also broke below its 0.786 Fibonacci retracement level as well — its last meaningful level before a confirmed full retrace of the Oct. 25 rally to $10,500.

According to BitMEX, more than $179,3 million worth of Bitcoin longs have been liquidated on the exchange. Shortly the price action came after the BTC price plummeted to $7,350 (the price of Bitcoin still fluctuated around $7,500 on spot exchanges). It is estimated that with average leverage of 25 times, Bitcoin speculators made a total loss of about $6.4 million.

The famous BitMex trader has shared this story on Twitter:

bitcoin-drops-to-7600-for-first-time-this-month-heres-why

Given the current situation, it is highly likely that Bitcoin will drop below $7,000. At press time, the top currency by market cap is at $7,600 without buying pressure, CoinStats data shows.

FUD from China

According to The Block Crypto, rumors of the Chinese government “raiding” Shanghai office of Binance is one of the causes of this crash.

However, the exchange claimed not to receive any notice from the Chinese authorities.

A Binance spokesperson saying:

“Binance has no fixed offices in Shanghai or Bejing, so it makes no sense that police raided on any offices and shut them down. […] There has been a recent spike in the number of negative articles and activities against Binance in China. We wouldn’t delve too much into what causes this, because we prefer to continue BUIDLing our solutions.”

Changpeng Zhao, CEO of Binance, said: No police, no raid, no office.  In the previous tweet, he also said: Office and HQ are old concepts like SMS and MMS. Time is moving on…

Binance doesn’t have a headquarter at the moment.

The October historical rally was ended

However, after several days of no notable volatility, Bitcoin has bottomed out at $8,000, falling to around $7,600 at press time. This was the level of consolidation before Bitcoin made a 42% historical price increase on October 25.

Cryptocurrency market daily performance. Source: Coin360

And the situation today is quite understandable because Bitcoin’s rise in October was mostly thanks to FOMO from China. At that time, President Xi Jinping publicly supported the Blockchain and encouraged China to develop new technologies fully.

However, the positive statements about the Chinese President’s blockchain technology do not help the cryptocurrency market. Perhaps we misunderstood the message: “Blockchain, not Bitcoin.”

bitcoin-drops-to-7600-for-first-time-this-month-heres-why[3]

Besides, market analyst Keith Wareing predicted that the BTC price would drop to $7,400, after which it would rebound. However, if Bitcoin continues to fall, the $7,230 threshold is slight support. However, if the bottom breaches $6,000, the next support levels are $5,800 and $5,000.

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Clara

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