Bitcoin Dropped Below $83K as Liquidity Hunting Takes Hold
Bitcoin's price dropped below $83,000 on Monday as it struggled to maintain its momentum. The cryptocurrency had been trading at weekly highs of over $84,450 but failed to push past its resistance level above $87,000.
The sudden drop was attributed to the addition of over $30 million in ask liquidity to exchange order books at around $85,700. This move is often seen as an attempt by large traders to influence price direction and can be a sign that the market is being manipulated.
Data from CoinGlass showed that the drop resulted in liquidation of nearby long positions totaling around $70 million over 24 hours.
The weakness in Bitcoin's price was accompanied by a decline in US stock futures, with Nasdaq futures down 0.9% on the day. The drop in stocks and oil prices may have also contributed to the decline in Bitcoin's value.
Aksel Kibar, a markets commentator, warned that Bitcoin risked returning to its sub-$80,000 range if it failed to break through the resistance level above $87,000.