Bitcoin (BTC) fell below $42,000 for the second time over the weekend after failing to break above $43,100 due to muted trading volume following the ETF hype late last week.
At press time, BTC was trading at $41,870 on most major exchanges. The price is still above the key support level of $40,250; However, selling pressure continues to mount before Asian markets open for trading.
The flagship cryptocurrency recorded $23.68 million in liquidations in the last 24 hours, of which about 85% were long positions – amounting to $20.11 million, according to data from CoinGlass.
The liquidations mostly affected traders on major exchanges, with Binance and OKX bearing the brunt, recording $7.51 million and $5.26 million in liquidations, respectively.
Sell the news
The approval and launch of spot Bitcoin ETFs initially caused the price of Bitcoin to rise to around $49,000. However, following the excitement, there was a significant price drop, partly due to market reactions typical of “Sell the News” events.
Such market behavior often occurs when anticipation builds for an event (such as the launch of ETFs) and a rapid sell-off follows the actual event.
From a technical analysis perspective, Bitcoin showed signs of buyer exhaustion and increased selling pressure. Analysts monitoring indicators such as the Exponential Moving Average (EMA) noted that Bitcoin is trading at key resistance levels, indicating a possible price correction.
These technical signals can often lead to a self-fulfilling prophecy if traders and investors act on them.
ETF issuers are buying the dip
Meanwhile, ETF issuers reportedly purchased 23,000 BTC amid the downturn, with BlackRock accounting for 11,500 Bitcoin. It's unclear whether interest in these products will continue to grow or whether the weekend lull is a harbinger of things to come.
Experts believe that if these institutions continue to absorb Bitcoin at similar levels, there could be a supply shortage within a few months, driving the price to new highs.
However, the market has been cautious about outflows from Grayscale's GBTC ETF, whose holders have been underwater since 2022 and are likely looking for an opportunity to sell once they are healthy again.
BTC price and market data
At press time, Bitcoin is ranked #1 in terms of market capitalization, and so is the BTC price down 2.04% in the last 24 hours. BTC has a market capitalization of $822.13 billion with a 24-hour trading volume of $17.72 billion. Learn more about BTC ›
BTCUSD chart from TradingView
Market overview
At press time, the global cryptocurrency market is valued at at 1.65 trillion dollars with a 24-hour volume of $48.87 billion. Bitcoin dominance is currently at 49.71%. Find out more >
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