Bitcoin breaks below $66,000… $230 million in leveraged long positions liquidated in an hour

Suehyeon Lee

Summary

Bitcoin plunged to the $65,000 level, and it was reported that more than $200 million in long positions were liquidated in derivatives markets within an hour.
According to the market analysis account The Kobeissi Letter, roughly $230 million worth of leveraged long positions were forcibly liquidated over the past hour.
It was noted that when support is breached in heavily leveraged zones, automatic liquidations increase selling pressure, and the move is being interpreted as a derivatives-led deleveraging process.

As Bitcoin (BTC) plunged and slid to the $65,000 level, more than $200 million in long positions were liquidated in derivatives markets within an hour.

According to the market analysis account The Kobeissi Letter on the 22nd (local time), roughly $230 million worth of leveraged long positions were forcibly liquidated over the past hour. The sharp short-term drop appears to have triggered a cascade of liquidations in the derivatives market.

When prices break below key support in areas with heavy leverage positioning, automatic liquidations tend to amplify selling pressure and accelerate the pace of declines. This latest slide is also being interpreted as a derivatives-led deleveraging (reduction in leverage) process.

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