Bitcoin had broken above $40,000 again last week, marking the digital asset’s fifth break above this point this year alone. Given that it has been trending in its $36-$38k support level before this, traders had taken to placing their trades in anticipation of the cryptocurrency’s next movements. The digital asset had barreled towards $42,000 leaving positive sentiment in its wake but resistance at this point proved devastating for long traders.
A recent pullback in the price of bitcoin saw a significant amount of long liquidations rock the market. Bitcoin which was expected to early break through $42,000 has met more resistance than anticipated. Bears had put up one hell of a fight at this point and in the end, the bulls had succumbed to this pressure, causing the price of the digital asset to revert back down.
In the wake of this had been massive liquidations. In a single hour, bitcoin saw more than $20 million in long liquidations happen in the early hours of Monday. These liquidations ramped up as the price fell back below $42,000, eventually reaching as low as $40,889.