$600 million in leveraged positions liquidated as Bitcoin price crashes 5%

• Bitcoin price dropped by $3,100 as it crashed to $56,713 in under an hour.
• $600 million worth of leveraged longs were liquidated as a result of this sudden price dip.
• A particular technical indicator forecasts more losses to come. 

Bitcoin price saw a momentary pause in its uptrend as it dropped by nearly 5% in less than an hour.

Bitcoin price wipes $600 million worth of leveraged positions

Bitcoin price surged 20% in the last five days, but the sudden $3,100 drop seen recently dragged it from $59,816 to $56,713 in a matter of minutes. The move triggered a significant number of stop-loss orders across the board and generated over $600,000,000 in liquidations.

The downswing comes shortly after the Momentum Reversal Indicator (MRI) flashed a sell signal on the 12-hour chart. The pessimistic setup forecasts a one-to-four candlestick correction that seems to be underway.

Additionally, the downward price action pushed Bitcoin below a crucial support level repressented by the parallel channel’s trendline, hinting at a continuation towards the $56,643 support level.

If the selling pressure persists, BTC price could even slide to $52,500.

BTC/USDT 12-hour chart

The uptrend’s resumption seems more likely if Bitcoin price invokes a decisive 12-hour candlestick close above $58,650, which coincides with the MRI’s State Trend Resistance.

This minor uptrend could set the stage to propel the pioneer cryptocurrency toward the $64,000 level. This climb will face significant resistance at $60,300 and $61,000, but breaching these levels will generate enough bullish momentum to catapult Bitcoin price toward its intended target.

Adding credence to this bullish thesis is Bitcoin’s monthly chart, which shows a sixth consecutive green candlestick in play. Such a setup was last observed in 2013’s bull run.