Bitcoin short liquidation risk surges as BTC price dips under $64K

0


Bitcoin (BTC) traded lower on April 25 after a fresh knee-jerk reaction to geopolitical news cost bulls up to 5%.

BTC/USD 1-hour chart. Source: TradingView

BTC price stays sensitive to Middle East

Data from Cointelegraph Markets Pro and TradingView showed BTC price action attempting to form support at $64,000 prior to the Wall Street open.

This followed a dip to $63,575 around the previous daily close, resulting from renewed Middle East tensions.

According to the latest figures from monitoring resource CoinGlass, liquidity increased on both sides of the spot price across crypto exchanges on the day.

Notably, a large cloud of asks had appeared, beginning with around $75 million at $64,765 and laddering up to $67,700.

To the downside, there was comparatively modest bid interest focused on $63,500 — the local low.

Bitcoin liquidation heatmap (screenshot). Source: CoinGlass

Bitcoin managed to fill one of two recently-created CME Group futures gaps with its latest downside.

Source: Johnny

Commenting on the current status quo, popular trader Daan Crypto Trades reiterated the “healthy” state of funding rates as a basis for a slow but steady BTC price recovery going forward.

“Keep it this way as we grind up and we should have a solid base for higher. Don’t want to see longs ape back in on the next best green candle,” he wrote in part of commentary on X (formerly Twitter) alongside CoinGlass data.

Bitcoin funding rates heatmap (screenshot). Source: CoinGlass

In the latest edition of its “New York Color” market updates sent to Telegram channel subscribers on April 24, trading firm QCP Capital revealed shifting crypto sentiment on low-timeframes.

“The market is expecting upside to be capped and for spot price to consolidate in the short term,” it wrote.

Bitcoin ETF flows tread water

Meanwhile, the United States’ spot Bitcoin exchange-traded funds (ETFs) returned to net outflows on April 24.

Related: $1M Bitcoin price still in play amid ‘macro liquidity surge’ — Arthur Hayes

These were driven mostly by outflows from the Grayscale Bitcoin Trust (GBTC), data from sources including United Kingdom-based investment firm Farside.

Bitcoin spot ETF flows (screenshot). Source: Farside

In an unusual event, as Cointelegraph reported, the largest ETF offering from asset manager BlackRock saw zero inflows.

Spot ETFs are due to begin trading in Hong Kong on April 30, marking another first for Bitcoin institutional adoption.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.