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The Bitcoin price was trading at $54,203 as of 3:00 am EST, up 7.95% over the last 24 hours.
Data from TradingView revealed that BTC fell from a high of $57,515 during the early Asian trading hours, dropping 7% to an intraday low of $53,499 on July 5. The big crypto has painted a large hourly candle, extending the lows below the May 1 low at $56,500.
Accompanying Bitcoin’s performance are massive liquidations across the crypto market. According to data from Coinglass, more than $685 million leveraged crypto positions have been liquidated over the last 24 hours, with $470.3 million liquidated over the last 12 hours alone.
Long Bitcoin liquidations amounted to $185.3 million, with the tally continuing at the time of publication.
This means that long traders were caught off-guard on BTC’s drop below $54,000. The largest single liquidation order occurred on Binance involving an ETH/USDT trade valued at $418.48 million.
Bitcoin price gears up for recovery 16 hours to the halving
The BTC price had formed a descending parallel channel on the daily chart, as shown below. Bitcoin’s drop below $60,000 on July 3 saw the big crypto break below this bearish chart pattern, confirming a downward breakout.
The BTC bulls ensured that the price produced a daily candlestick close below the lower boundary of the prevailing chart pattern at $59,200 on July 4. Apart from this crucial support level, the price also lost a crucial support level, embraced by the 200-day exponential moving average (EMA).
All the major moving averages are facing downward, and the relative strength index is in the oversold region at 24, suggesting that the bears are in full control of the price. As such, continued selling will see the price drop further, first toward the $50,00 support level and lower to collect the demand-side liquidity toward the $42,000 support floor.
On the upside, a daily candlestick close above $55,000 would indicate the inability of the sellers to sustain lower levels. The BTC price will recover back to reclaim the 200-day EMA and later move into confines of the declining channel with the middle boundary of the channel at $61,600 being a key level to watch on the upside.
Above that, the psychological level at $62,000 and the upper boundary of the channel at $63,400 - embraced by the 100-day EMA - were additional resistance lines.
