Markets
Bitcoin drops below US$64,000 and generates more than US$100 million in liquidations: ‘Consolidation phase underway’, says trader
Bitcoin BTC/USD experienced a price correction on Fridayfalling below $64,000 and generating over $27 million in long position liquidations in the last 24 hours.
This follows a broader trend of liquidations across the cryptocurrency market, with a total of $132 million liquidated over the same period.
Data in Currency Currency reveals that long positions were responsible for the majority of these liquidations, at around $105 million.
Is this a consolidation phase?
Despite the recent price drop, some analysts remain optimistic about Bitcoin’s long-term prospects.
Merchant Jason Pizzino believe Current market activity is part of a consolidation phase ahead of a potential increase later in the year.
“Looking at Google trends, Bitcoin and crypto search terms are still down significantly compared to earlier this year,” noted Pizzino. “This suggests to me that we are still in a sell-off period, similar to what happened in 2020.”
Pizzino highlights the decline in search volume for terms like “Bitcoin”, “buy Bitcoin” and “sell Bitcoin” as a sign of waning interest in the short term.
He compares this to 2020, where a similar trend preceded a period of consolidation followed by a price increase.
Read too: California judge advances civil securities suit against Ripple, sets stage for trial
Potential for renewed activity in Q3 2024
Pizzino predicts that increased activity could return in the third quarter of 2024, potentially coinciding with a period historically marked by price volatility.
“Based on previous cycles, the period between July and September, about four to six months after the previous all-time high, could see renewed action,” explained Pizzino. “We will have to wait and see, but for now, the consolidation phase appears be continuous.”
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