Bitcoin Bearish Rally Sparks Over $2 Billion Selloffs

  • Last Monday, May 10, USD 6.5 billion entered the exchanges.
  • BTC liquidations grew 150% in the last 24 hours.

The bitcoin (BTC) market posted the largest sell-off volume since March 2020 on Thursday as its price found support at $25,000, before rallying above $28,000. On the other hand, BTC settlements in the last 24 hours reach USD 2.2 billion, according to figures from CoinGlass.

The growing sales of the last few days are reflected in the BTC inventories in the crypto exchanges, which have been increasing, as can be seen in the following graph. They have gone from a minimum of 2.4 million BTC on April 22 to 2.51 million BTC on Tuesday, May 10, according to data from CryptoQuant. In total, more than 37,000 BTC entered the exchanges in that period, which is equivalent to USD 1,443 million.

Whales transfer volume BTC

Another aspect of the incoming flows can be seen in the following graph. The transfer volume of BTC in the hands of the “whales” to the exchanges is the largest since March 2020.

BTC sales grow

As the price decreases, liquidations begin to increase amid the panic that has taken the market. The chart below shows the liquidations in the last 24 hours, dominated by short positions. These consist of traders betting that the price will go down, while long positions are held in the expectation of an increase in price.

liquidations data bitcoin

Liquidations increased more than 150% in the last 24 hours. As a result of the capitulations, they reached 2,242 million dollars, in which a predominance of short positions can be seen.

This means that amid the price collapse, traders were betting more on a downside to levels below $25,000, which is this Thursday’s low. The subsequent rally in price, however, led to the liquidation of those bearish positions.

After reaching the support level at USD 30,000, the price of BTC has continued with a predominantly downward trend. In an analysis of this medium, published this Thursday the 12th, the collapse of Luna and Terra USD is pointed out as one of the causes of the decline in the price of both BTC and the cryptocurrency market as a whole.

On the other hand, the global geopolitical situation is also holding back the momentum of the markets, largely due to the prospect of future measures by the Fed to try to contain inflation. After fluctuating for a week at around USD 40,000, the price of bitcoin lost this support at the end of April, and accentuated its downward trend as a result of the increase in interest rates by the Fed at the beginning of May.

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