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Crypto Bulls See $400M Liquidations as Solana, Dogecoin Lead Slide in Majors
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Major tokens experienced a significant drop in the past 24 hours, with bitcoin falling 5% and other major tokens like ether, Cardano’s ADA, and BNB Chain’s BNB showing similar losses.
Liquidations of long positions, or bets on higher prices, amounted to over $400 million, while shorts, or bets against, took on a relatively smaller $85 million.
Analysts at Bitfinex suggested that bitcoin is likely to remain range-bound in the coming weeks as long-term investors sell off holdings.
Major tokens slid as much as 8% in the past 24 hours as bitcoin (BTC) reversed last week’s gains amid selling pressure caused by a stronger dollar, leading to over $400 million bullish bets being liquidated.
Data shows that bitcoin fell 5%, with ether (ETH), Cardano’s ADA, and BNB Chain’s BNB showing similar losses. Solana’s SOL dropped 7% to trade at $185 after briefly touching $200 on Monday, while Dogecoin (DOGE) dropped more than 8%. Bitcoin Cash’s BCH fell 10% amid profit-taking after a 40% rally in the past week, buoyed by the expected halving event for the network on April 4.
The broad-based CoinDesk 20, a liquid index tracking major tokens minus stablecoins, slumped just over 5%.
Longs, or bets on higher prices, took on more than $400 million in liquidations, with shorts, or bets against, taking on a relatively smaller $85 million. A liquidation happens when a trader has insufficient funds to keep a leveraged trade open.
Analysts at crypto exchange Bitfinex told CoinDesk in an email that some long-term investors sold off holdings in the past week, adding they expect bitcoin to be range-bound in the coming weeks.
“We believe that bitcoin is likely to continue to consolidate within a range, as previously dormant supply, particularly among Long-Term Holders (LTHs), is being sold (although at a relatively smaller scale than previous bull market tops),” Bitfinex said.
“There is strategic profit-taking observed among the LTH cohort (holders of BTC of more than 155 days),” the analysts added.
Elsewhere, FxPro senior market analyst Alex Kuptsikevich said in a message that bitcoin faces resistance at the $71,000 level as broader markets show caution against riskier assets.
“Bitcoin’s fourth attempt to consolidate above $71K this week was unsuccessful. The Nasdaq100 also showed some downward bias, indicating a cautious attitude towards risky assets, although the S&P500 closed at another high,” Kuptsikevich said. “Bitcoin has thus found strong resistance, and the $69.5K and $68.5K levels attract our increased attention.”
