- Bitcoin made a slight recovery after the decline.
- Liquidation has slowed after the price drop caused a spike.
Bitcoin [BTC] saw a significant decline in the last trading session, resulting in a sharp increase in liquidations. Due to this drop, traders who bought Bitcoin in the last 30 days are now facing losses.
Bitcoin liquidations spike
AMBCrypto’s analysis of Bitcoin’s liquidation chart on Mint glass revealed a significant increase in liquidation volume on June 24. The spike was mainly caused by a sharp decline in the price of Bitcoin.
It resulted in significant liquidations, especially among long positions, which amounted to more than $156 million.
In contrast, short positions saw liquidations of around $21 million, indicating that traders who had bet on a price increase were the hardest hit.
Source: Coinglass
At the time of writing, although there had been a slight increase in the price of Bitcoin, short positions had been liquidated more frequently.
The volume of short liquidations was approximately $13.5 million, while long liquidations were lower, around $5.2 million.
This shift suggested that traders who expected a continued price decline were now facing losses due to the recovery in prices.
Bitcoin sees a slight increase
AMBCrypto’s look at Bitcoin’s price trend revealed a notable decline on June 24, with its value falling to a low of $58,414 during the trading session.
By the end of the session, the price had partially recovered to around $60,263, but was still down 4.60% from its opening value. This decline caused significant liquidations in the market.
Source: trading view
At the time of writing, the price had risen to around $61,300, reflecting an increase of around 1.70%. During the decline, the Relative Strength Index (RSI) for Bitcoin fell below 30, indicating a strong bearish trend.
While the RSI has recovered slightly above this critical threshold, it suggested that while there was a small improvement, BTC was still showing mostly strong bearish momentum.
BTC holders at a loss
The analysis of Bitcoin’s 30-day market value to realized value (MVRV) ratio, as reported on Santiment, revealed a worrying trend of decline.
This ratio, which compares an asset’s market value to its realized value, fell below zero around June 10.
The dip indicated that average market participants were holding Bitcoin at a value lower than their purchase price.
The recent price drop has exacerbated this situation, with the MVRV ratio falling to around -9.7% on June 24.
Source: Santiment
At the time of writing, there was a slight recovery in the MVRV ratio to around -8.14%, but it remained negative.
Read Bitcoin’s [BTC] Price forecast 2024-25
This persistent negative reading suggested that traders who bought Bitcoin in the past 30 days were still facing losses on their investments.
A negative MVRV ratio is often seen as an indicator that the asset is undervalued and current holders have purchased at higher prices than the current market is willing to pay, keeping market sentiment bearish.