Bitcoin price hits 3-week low as SEC fears liquidating $250 million in crypto loans
Bitcoin (BTC) fell to bearish target zones on February 10 as bulls failed to hold key support above $22,000.
Crypto wipeout increases as BTC price loses $22,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling to $21,633 on Bitstamp.
The pair reacted poorly to regulatory fears from the US, but had already faced days of bearish sentiment, with traders expect a retest of $21,000 or even lower.
At the time of writing, Bitcoin was trading at around $21,800, down around 7% in February so far.
“Bear market back, or are we just in for a small correction?” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, asked on the day.
Some were busy with short positions as BTC price action matched expectations, with popular trader Crypto Tony eyeing $21,400 as a potential retracement zone should losses continue to materialize.
“The profit is coming in well on the short, and my next target is the support cluster at $21,400. If we see a retest of $22,300, this could be your chance to get in, after a failed retest,” wrote in part of the commentary together with an explanatory diagram.
Those who remained in long positions therefore felt intense pain overnight. According to data from the data resource Coinglass, long liquidations for Bitcoin alone amounted to $64.6 million for February 9.
On-Chain College, a contributor to the analysis platform CryptoQuant, noted that these included $24.3 million in a single hourly candle – the most since the FTX crash in early November 2022.
On February 9, liquidated $254 million in longs, including altcoins.
Analysts look for “confirmation” at $16,000
Looking beyond immediate price performance, fellow CryptoQuant contributor Venturefounder focused on whether the macro bottom was really in for Bitcoin.
Related: Arthur Hayes bets on Bitcoin, altcoin surge in H1 2023 as he buys BTC
If BTC/USD were to preserve the 200-day moving average (DMA) near $20,000 – or even $19,000 – as support, argued on the day, it may have greater consequences for price measures.
BTC/USD saw two-year lows just below $16,000 in the wake of FTX, levels that at the time sparked mass calls for a trip to $12,000.
“A retest of $19-$20k Bitcoin (200DMA zone) would be very appropriate here,” Venturefounder wrote in a Twitter thread.
A further post argued, “Holding $19-20k during this correction would be the first confirmation that $16k was the Bitcoin cycle bottom.”
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