Leverage traders are staring at over $654,000,000 in losses after Bitcoin (BTC) suddenly dipped to $62,000, a more than 8% decline from the day’s high.
According to crypto data aggregator Coinglass, more than 232,029 traders suffered $654.34 million in liquidations during the last 24 hours – mostly from leveraged longs.
Crypto exchange OKX hosted the largest number of liquidations at $244.55 million, followed by Binance, the world’s largest crypto exchange, at $239.60 million.
The largest single liquidation order happened on OKX in the BTC/USDT pair for a value of $12.25 million, according to Coinglass.
Bitcoin is trading nearly 14% below the new all-time high of $73,737 reached on March 14th. After dipping down to around $62,000 Tuesday, Bitcoin has recovered slightly and is trading for $63,890 at time of writing.
According to pseudonymous crypto trader Rekt Capital, Bitcoin’s sudden dip coincided with the leading digital asset entering the so-called “danger zone” ahead of the halving event when miners’ rewards are cut in half.
The trader says that historically, Bitcoin has seen a deep correction anywhere from 14 to 28 days before the halving event. He estimates the next halving event is April 15th.
He believes that Bitcoin could dip to as low as the $44,000 range based on BTC’s price action during the 2016 and 2020 market cycles.
“20% from here [$65,348] would be interesting. That would be approximately $13,000 towards the downside, or a 30% retrace would be even deeper than that. It would get us down from current levels by approximately $21,000. And that’s pretty crazy to think that we could still get to $44,000.”
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