Cryptocurrency market liquidations amounted to $ 250 million per day

Bitcoin dropped below $ 67,000, triggering a new wave of liquidations in the derivatives market. Over the past 24 hours, more than $ 250 million in leveraged positions have been forced to close, most of which were long positions after the breakdown of key intraday support. Market participants are watching closely to see if BTC can return above $ 72,000, a level that analysts say is critical for the resumption of short-term growth.

On the two-week chart of BTC/USD published by Trader Tardigrade in TradingView, Bitcoin formed a double top pattern and broke through a long-term support zone. After that, the price moved into a compression phase within a contractual triangle, a structure with converging resistance and support lines that often occurs after a sharp drop.

Tardigrade’s trader noted that the current situation repeats the historical scenario: after the double top, the asset entered a contractual triangle, and the further direction will depend on which way the exit from this formation will take place.

On the daily chart published by analyst Dave the Wave, Bitcoin continued to decline after an unsuccessful attempt to gain a foothold above the downtrend line. The price dropped to around $ 69,364 and was moving towards the lower support zone. Prior to that, the asset broke through the horizontal level in the mid-$ 80,000s and formed a sequence of lower highs and lows, which confirms the short-term downtrend.

According to Dave the Wave, a return above $ 72,000 could open the way to the mid-$ 80,000s, but for now, the price remains under pressure and is consolidating near support. The analysts emphasize that a daily close below $ 64,000 would confirm the bearish scenario with a target of around $ 58,000, while holding the range of $ 64,000-$ 67,000 could be the basic scenario.