Bitcoin experienced a significant price drop late Sunday, falling over 2.5% and triggering over $200 million in liquidations in the past 24 hours. The market is closely watching the upcoming decision on the anticipated spot Bitcoin Exchange-Traded Fund (ETF), with Bitcoin’s price consolidating in a tight range as it seeks direction.
In the last day, $212.39 million worth of trades were liquidated, predominantly long positions. The liquidations comprised $172 million in longs and over $40 million in shorts. The sell-off was attributed to the rapid decline in Bitcoin’s value on Sunday.
As Bitcoin’s price dropped, mining pool F2Pool’s transfer of 2,000 BTC to Binance was highlighted by on-chain analytics platform Lookonchain. The transfers, totaling nearly $88 million, occurred over two separate instances and suggest that miners are cashing out as Bitcoin had recently seen a noticeable rise.
Miners have been under pressure since the broader crypto market downturn in December 2022, with some smaller mining firms even filing for bankruptcy. Miner sell-offs have reached a two-month high since December 2022, indicating a potential strategy shift amidst market challenges.
Despite the sharp correction on Sunday, Bitcoin rebounded from testing the $43,222 level back to above $44,000. The price has been consolidating between $44,300 and $43,200 since Thursday, with the ETF decision contributing to the uncertainty. On-chain data reveals strong support between $42,560 and $43,245, with significant resistance levels absent if Bitcoin maintains above this range. However, a break below could lead to a drop towards the next critical interest area between $26,770 and $30,220.