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Bitcoin has dipped below the $120,000 mark amidst growing concerns over US inflation and a massive liquidation storm totaling $461 million in value. The sudden correction follows a strong run from $108,000 to $123,000 earlier today.
According to Nansen analytics, significant liquidation activity took place around the $116,300 mark, which could have contributed to the downturn. This psychological level serves as an important indicator for traders, as it may hinder further price growth if breached.
Long traders who expected Bitcoin’s value to continue increasing faced substantial losses during this period, with a staggering $383 million in liquidations attributed to them. On the other hand, short sellers saw a smaller loss of approximately $78.5 million.
This recent downturn is not the first instance of significant market correction for Bitcoin. As we have seen before, price drops can be followed by sharp rebounds or extended declines depending on how global economic conditions unfold.
Source: cryptoslate.com
