The price of Bitcoin on Sunday was chaotic after sell orders from large holders caused the price to drop rapidly by 2,000 USD, leading to a large number of liquidations and a sharp rebound as well.
This movement has wiped out both retail and institutional traders in just a few hours and has raised concerns about disruptions due to a lack of liquidity and the fragility of the order book as Bitcoin remains above 91,000 USD
USD 1.39 billion in Bitcoin was sold off within one hour
Several analysts reported simultaneous selling that appeared coordinated, with over 15,565 BTC worth approximately 1.39 billion USD hitting the market in a single hour
This event occurred due to ongoing sell-offs: large holders sold 4,551 BTC, Coinbase sold 2,613 BTC, Wintermute sold 2,581 BTC, Binance sold 2,044 BTC, BitMEX sold 1,932 BTC, Fidelity sold 1,844 BTC, totaling 15,565 BTC worth 1.39 billion USD sold off in one hour. This is a large coordinated sell-off, Wimar wrote in a post.
The sudden increase in supply entering the market simultaneously accelerated Bitcoin's drop from 89,700 USD to 87,700 USD, causing continuous liquidations
171 million USD in liquidation when long and short trades were offset
The rapid drop initially wiped out BTC longs worth 171 million USD as the price of Bitcoin fell 2,000 USD in a few minutes, before rebounding sharply. At the time of writing, the price of Bitcoin is 91,494 USD
Along with this rapid recovery, nearly 14 million USD in short position liquidations occurred in the last hour and over 91 million USD in the past four hours.
This is another example of price manipulation during a low liquidity weekend to break both sides of the lever. Bull Theory stated.
Data from Coinglass confirmed the losses this time, with 121,628 traders being liquidated in the past 24 hours, resulting in total liquidations of 346.67 million USD
Market analysts stated that this is not normal volatility, as Marto pointed out that the sequence is not coincidental.
People call this volatility, which it is not. It is artificial liquidity accumulation. When the order book is weak, large coin holders swing the price like a door hinge and profit on both sides, he wrote.
Others pointed to the speed of the recovery, with Lenny, a trader known for tracking liquidity trends, commenting on this sudden volatility.
To be honest, the situation where the price of Bitcoin dropped to 89k was absorbed quickly. This is not noise, Lenny commented.
This rapid absorption indicates strong demand, although strong leverage is still being wiped out at lower prices over the weekend.
Can Bitcoin maintain USD90,000?
The price of Bitcoin is recovering from weekend losses but continues to show signs of stress during the day. The paired liquidations indicate that the thin order book over the weekend remains a target for major players who can move billions USD within minutes.
Demand for spot goods may stabilize price movements in the coming week, especially when liquidity is normal and the derivatives market resets.
With over 300 million USD in liquidations after this, Bitcoin enters the next trading phase without leverage but highly sensitive to movements from additional whales.
While data shows that a short position of 1 billion USD is at risk of liquidation if the price of Bitcoin jumps to 93,000 USD.
Importantly, the level of 93,000 USD is only 2% away from the current level.
