According to London-based cryptocurrency data provider Skew, more than $150 mln worth of longs and shorts were liquidated on what appears to be the bloodiest day for Bitcoin (BTC) in 2020.
The leading cryptocurrency dropped by more than eight percent and touched an intraday low of $8,620 before some buyers stepped in to push its price a tad higher.
Bitcoin is in deep trouble
While it's tempting to assume that BTC might have already reached the bottom of the ongoing correction, market analyst Edward Moya believes that this carnage is far from over. He says that Bitcoin's true value has been called into question by investors.
"Despite Wednesday’s broad relief rally, the entire crypto space is selling off. The market carnage of the past few days has investors questioning Bitcoin’s true value," Moya told Bloomberg.
As reported by U.Today, trading legend Peter Brandt recently suggested that Bitcoin had completed a bearish head-and-shoulders formation after showing no signs of safe-haven buying.
Will the golden cross save the day?
Trader Jacob Canfield pointed out that BTC briefly touched the 200 EMA on the daily chart before bouncing back. It is worth noting that BTC never closed above this pivotal moving average after the 2015 golden cross, which marked the beginning of the previous bull market.
First test of the 200 EMA daily for #Bitcoin.
This is why I said the market was not bullish yesterday with the funding spiking hard for longs.
Currently haven't taken a long position yet as I was waiting for a reaction.
Let's see if we get anything here.
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The bulls have to keep an eye on the upcoming daily close given that is it's the first major test for the most recent bullish crossover that came about on Feb. 17.
