Bitcoin fell from $58,369 to a local low of $47,619
Bitcoin then rebounded to $55k before once again dipping to the $47,600 level
The volatility caused $4.4 Billion in liquidations
The crucial $50k support hangs in the balance as February comes to a close
There could be additional selling pressure with Bitcoin futures and options contracts expiring on Friday as well as the monthly close
The Bitcoin and crypto markets have experienced a rollercoaster ride in the last 48 hours. Early yesterday, Bitcoin posted an all-time high value of $58,369 before plummeting to $47,619 in the same 24 hour period. This massive dip was worth $10,750 and is the largest in Bitcoin’s history.
The massive drop had a ripple effect causing liquidations worth $4.44 billion that affected 474,968 traders. The team at Bybt.com shared the above data on liquidations through the following statement and screenshot highlighting the magnitude of the losses.
In the past 24 hours, 474,968 traders were liquidated. In total $4.4B was liquidated! This is the craziest day in #Bitcoin futures history.
Bitcoin Battles for $50k
Yesterday’s dip by Bitcoin to $47,619 resulted in a quick bounce back to the $55k price area. At the time of writing, Bitcoin is trading at $47,600 in what looks like a possible double bottom formation with yesterday’s low. The screenshot below of the hourly BTC/USDT chart gives a better visual cue of the situation.
Bitcoin Futures and Options Expire this Friday, Coupled with the Monthly Close
If Bitcoin can find a floor at its current levels, chances are that $50k could also be regained as a support zone in the hours and days to follow.
However, Bitcoin has two more hurdles this week as shall be elaborated.
To begin with, there are the Bitcoin futures and options contracts that expire this Friday, February 26th. According to Skew, a total of 63,100 Bitcoin options expire on this date. There is also the now-familiar CME bitcoin futures that expire on the same date. Volatility usually accompanies the expiration of these contracts and Bitcoin could experience additional selling pressure before the month ends.
Secondly, the monthly and weekly close is this Sunday, February 28th. Chances are, that Bitcoin will have little room to absorb the possible impact of the futures and options expiry on Friday. Therefore, Sunday, rolling into the new month of March, could provide selling pressure that could send Bitcoin to lower levels.