Bitcoin (BTC) extended its price drop on Wednesday amid warnings that excessive long positions needed to be flushed out to allow for fresh gains.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingviewBTC price barely clings to $56,000 support
A look at trader behavior pointed to leveraged long positions in place at previous spot price, indicating belief that further upside is more likely than another correction. These positions, analyst Filbfilb believes, need to be liquidated before Bitcoin can make a meaningful attempt at new all-time highs.
The latest price action went some way to refreshing market composition — $2 billion in liquidations in the past 24 hours, $600 million of which in a single hour alone, according to data from monitoring resource Bybt.
“A large inflow