Bitcoin Plunges to a Four-Month Low with Accelerating Position Liquidation

Al-Taj News – Cryptocurrencies tumbled over the weekend, with Bitcoin dropping to its lowest level in four months amid a wave of leveraged long position liquidations and increasing pressures on the digital asset market.

The largest cryptocurrency by market value fell 5.7% during US trading on Saturday, before continuing its losses in Asian trading on Sunday, dropping an additional 3.7% to $62,022, its lowest level since last July 14, before recovering some of its losses to rise to around $64,800 by Sunday noon Singapore time.

Ether, the second-largest cryptocurrency, also fell 8% during the US session, and continued its decline on Sunday by 3.4% to $1,711, its lowest level since last July 8, before paring its losses to around $1,800.

Rich Rosenblum, co-founder of cryptocurrency market maker “GSR”, said the decline represents a technical move, explaining that Bitcoin’s drop below its 200-day moving average, which is around $73,000, triggered a wave of position liquidations and the opening of new short positions, noting that the currency is likely approaching a technical support level.