From Cointelegraph · By William Suberg
A Bitcoin (BTC) and altcoins sell-off triggered more than $1 billion in liquidations over 24 hours as short-term holders sent tens of thousands of BTC to exchanges at a loss.
Key points:
Crypto liquidations hit nearly $1.1 billion over 24 hours after Bitcoin dropped to $80,350.
BTC price downside further boosted the odds of a breakdown below key support, analysis by Rekt Capital warned.
Bitcoin short-term holders sent more than 55,000 BTC to exchanges at a loss on Thursday.
Bitcoin drop to $80,350 fuels $1.1 billion liquidations
Data from CoinGlass put total crypto liquidations at $1.09 billion for the 24 hours to 10 am UTC on Friday.
This was the largest daily tally since Aug. 21, when BTC/USD rose from $73,000 to $79,500, setting two-month highs and triggering $1.3 billion in crypto short liquidations. Conversely, long positions accounted for $1.05 billion of Thursdayâs total.
BTC/USD vs. crypto liquidations. Source: CoinGlass
The sell-off followed reports of the US government moving more than 12,000 BTC that it had previously confiscated. Such transfers can fuel potential sales.
BTC/USD dropped to $80,350 on Bitstamp, its lowest level since Sept. 18, before recovering to around $82,500 on Friday. That level remained key during Bitcoinâs broader uptrend since early July, and the breakout point for an inverse head-and-shoulders pattern. Bitcoin would need to hold it as support to confirm the bullish reversal.
Trader and analyst Rekt Capital, who has tracked the reversal pattern and its similarities to Bitcoinâs 2023 recovery, now sees the upcoming weekly candle close as key.
âBitcoin is currently failing its retest of ~$82500. Weekly Close below $82500 and turn it into resistance however and Bitcoin will be back in its Macro Accumulation Range,â he said Thursday on X.
BTC/USD one-week chart. Source: Rekt Capital on X.com
Short-term holders send 55,600 BTC to exchanges at a loss
Onchain data also showed stress among newer Bitcoin investors as the market fell.
Related: Bitcoin monthly ânew moneyâ inflows near $5B as BTC price rally stalls
Analytics platform CryptoQuant contributor Amr Taha reported that short-term holders â entities holding Bitcoin for up to six months without selling â sent 55,600 BTC to exchanges at a loss on Thursday.
Transactions at a loss refer to coins being sent to exchanges at a lower price than during their previous transaction. They often reflect investorsâ impulsive urge to exit their positions at a loss, fearing further downside if they delay their sales.
CryptoQuant notes that Thursdayâs loss tally was more than on June 26, when Bitcoin fell below $60,000 for the second consecutive day.