Bitcoin Price Stabilizes After Binance Liquidations: What’s Next?
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Bitcoin's price, after recently reaching a new all-time high, experienced a significant drop below $103,000 on June 20th, impacting the broader crypto market. This decline triggered a substantial long liquidation event on Binance, exceeding $160 million, according to CryptoQuant data. Simultaneously, Bitcoin's Net Taker Volume plunged into deeply negative territory, reaching nearly -$100 million. This marked the third such instance in June, indicating aggressive selling pressure outweighed buying activity. On-chain analyst Amr Taha attributes this negative Net Taker Volume to two primary factors: the forced closure of leveraged long positions and panic selling by retail traders fearing further losses. Despite the initial negative sentiment, Taha suggests this event might pave the way for healthier price action. The significant liquidation of overleveraged positions and the subsequent negative Net Taker Volume have potentially cleared the path for a more stable, upward price trajectory. With reduced leverage overhead and Bitcoin stabilizing above key support levels, the analyst predicts a shift toward upward momentum. Currently, BTC is trading around $103,450, showing a slight decline over the past 24 hours. The situation highlights the volatility of the cryptocurrency market and the interconnectedness of price fluctuations, liquidations, and trading volume.
(Source: https://www.newsbtc.com/news/bitcoin/bitcoin-net-taker-volume-enters-deep-red-on-binance/)
