Bitcoin Keeps Liquidating Longs As BTC Price Action Gives Up $22K Support

Bitcoin longs have been getting punished by relatively small BTC price losses over the past few days. The latest bearish moves pushed the cryptocurrency’s price below the $22,000 level of support, with BTC/USD currently trading around $21,500.

The losses follow a massive surge in the price of Bitcoin that saw it reach an all-time high of $24,500 on December 17. The rally continued as the cryptocurrency pushed beyond $26,000 in early 2021. However, it quickly dropped back to the $22,000 level and has been trading in the area ever since.

It appears that longs are getting liquidated as a result of these small slides. With Bitcoin price action giving up support at $22,000, it could be the catalyst for further losses for BTC/USD.

What Can We Expect in 2021?

The losses of the past few days could be a sign that Bitcoin is entering a more sustainable price range. While volatility and sharp movements in the market are likely to continue, a more stable price floor could help strengthen the digital asset in the longer term.

It’s also possible that the recent drops are just a pullback in a larger uptrend. The overall trajectory of Bitcoin has been increasingly bullish, and the past few days could simply be a pause before the next leg up.

Bottom Line

It’s no secret that Bitcoin has been on an absolute tear in recent weeks. Despite the recent losses, the cryptocurrency is still up more than 50% since the start of the year and is currently trading at a price of over $21,500. Longs have been liquidated as BTC/USD trends toward significant support lines, but the overall trajectory of the asset has been increasingly bullish and it’s possible that this is just a pause before the next leg up.

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