Panic over regulatory enforcement sees Bitcoin and altcoins give up recent gains, costing long traders over a quarter of a billion dollars in a single day.
Market Update
Bitcoin (BTC) fell to bearish target zones on Feb. 10 as bulls failed to hold important support above $22,000.
Crypto wipeout mounts as BTC price loses $22,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping to $21,633 on Bitstamp.
The pair reacted badly to regulatory fears from the United States but had already faced days of bearish sentiment, with traders expecting a retest of $21,000 or even lower.
At the time of writing, Bitcoin traded at around $21,800, down around 7% in February so far.
“Bear market back or are we just having a slight correction?” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, queried on the day.
Some were busy with short positions as BTC price action conformed to expectations, with popular trader Crypto Tony eyeing $21,400 as a potential bounce zone should losses continue to materialize.
“Profit coming in nice on the short and my next target is the support cluster at $21,400. If we see a retest of $22,300 then this could be your chance to get in, upon a failed retest,” he wrote in part of commentary alongside an explanatory chart.
Those remaining in long positions thus felt intense pain overnight. According to data from data resource Coinglass, long liquidations for Bitcoin alone totaled $64.6 million for Feb. 9.
On-Chain College, a contributor at analytics platform CryptoQuant, noted that these included $24.3 million in a single hourly candle — the most since the FTX crash in early November 2022.
Feb. 9 liquidated $254 million in longs, including altcoins.
Analyst looks for $16,000 bottom “confirmation”
Looking beyond immediate price performance, fellow CryptoQuant contributor Venturefounder focused on whether the macro bottom was really in for Bitcoin.
Related: Arthur Hayes bets on Bitcoin, altcoin surge in H1 2023 as he buys BTC
If BTC/USD were to preserve the 200-day moving average (DMA) near $20,000 — or even $19,000 — as support, he argued on the day, it may be more significant implications for price action.
BTC/USD saw two-year lows just under $16,000 in the FTX aftermath, levels which at the time sparked mass calls for a trip to $12,000.
“A retest of $19-$20k Bitcoin (200DMA zone) would be very appropriate here,“ Venturefounder wrote in a Twitter thread.
A further post argued, “Holding the $19-20k during this correction would be the first confirmation that $16k was the Bitcoin cycle bottom.“
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