Daily Crypto Liquidations: Bitcoin Sub-$60K Levels in Focus

Bitcoin experienced a drop in price to a two-week low as new spot price exchange-traded funds (ETFs) failed to meet expectations. The decline began during the Asia trading session, causing BTC/USD to lose support at $61,000. This led to a significant increase in liquidations across the crypto market, totaling $275 million in just 24 hours. The introduction of Bitcoin ETFs in Hong Kong also contributed to the bearish sentiment, as trading volumes on the first day fell below expectations. Despite this, the $12.4 million in trading volume was still considered impressive for the local market.

Bloomberg Intelligence analyst Eric Balchunas provided a positive perspective on the performance of the Hong Kong Bitcoin ETFs. He compared the trading volumes to those in the US, stating that although they were lower, they were significant considering the size of the local market. Balchunas also noted that the timing of the Hong Kong launch would impact overall spot ETF flows, particularly as US volumes had turned slightly negative. Reports from investment firm Farside confirmed that for four consecutive days leading up to April 29, there were net outflows in US ETFs.

Market participants were closely watching two key levels for a potential reversal in BTC price weakness. The 50-day exponential moving average (EMA) and the $60,000 support level were identified as crucial levels to monitor. Co-founders of on-chain analytics firm Glassnode, Yann Allemann and Jan Happel, stated that breaching the $60,000 support level could lead to further stability at around $52,000, which historically attracts buyers and reinforces an uptrend. Other traders also highlighted the importance of the 21-day EMA and expressed concerns about Bitcoin futures being shorted, which raised doubts about nearby support.

The disappointment surrounding the new Bitcoin ETFs in Hong Kong, coupled with the drop in price and concerns about shorting Bitcoin futures, created a bearish sentiment in the market. Some analysts remained optimistic, suggesting that certain support levels could lead to a reversal in the ongoing consolidation range. The performance of Bitcoin in the coming days will be crucial in determining whether the market sentiment shifts towards a more positive outlook.