Bitcoin continues to liquidate long as BTC price action gives up $22K support

Bitcoin (BTC) traders remain sensitive to even small price moves as data shows liquidations rising.

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

Longs start to disappear with BTC at three-week low

Despite the consensus that Bitcoin is retesting $20,000, small changes in the price are still taking their toll on traders.

According to data from monitoring resource Coinglass, on March 8 alone, $24.4 million worth of BTC loans were liquidated, the highest number in nearly a week.

This coincided with BTC/USD heading for a three-week low, leaving $22,000 as support. At the time of writing, the downward trend continues, while today’s liquidations are nevertheless insignificant.

Including altcoins, on March 8 liquidated $95 million longs and another $15.4 million shorts. Additional data from research firm Glassnode on the chain captured the dominance of long versus short liquidations.

Commenting on the action, Filbfilb, co-founder of trading suite Decentrader, claimed it was little surprise that overexposed longs were feeling the heat.

“It makes sense to wipe out the majority’s yearning towards the price direction,” part of the Twitter commentary tired.

An accompanying diagram showed mounting of windings with geared position.

Research warns of ‘liquidity crisis’

As Cointelegraph reported, Bitcoin price action remains relatively flat despite the liquidation behavior.

Related: BTC May Need to Fall to $19.3K to Cool Bitcoin Profit Taking – New Data

February was the least volatile month on record in terms of open and close prices on monthly timeframes.

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

Analyzing price behavior following a significant liquidation event on March 3, Kobeissi forecast a “liquidity crisis” that spans macro assets.

“Net liquidations in crypto markets exceeded $200 million in 1 hour. Since then, Bitcoin has traded completely flat and liquidity is gone. Imagine what will happen to broader markets when liquidity dries up,” it wrote.

Such a crisis, meanwhile, it described as “the biggest risk to the markets right now.”

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