Bitcoin Sheds More Than 18% in a Day Following an Unprecedented Pullback

In the past 24 hours, Bitcoin appears to have fallen off a cliff. The cryptocurrency giant fell right after it broke the $10,000 resistance to the $8,100 level, recording more than an 18% drop. The price of BTC dropped drastically, ignoring previously recorded support lines as it approached its new monthly low.

According to a Bitcoin price monitoring website, more than $200 million worth of long positions were liquidated just a few minutes after the drop. This is said to be the largest liquidation frenzy since the crypto crash of March which sent Bitcoin from a high of $7,700 to $3,700 within just a few hours.

This liquidation is indicative of how “overleveraged” Bitcoin longs were, presumably because many expected the price of BTC to continue upwards after it broke the 5-digit barrier. However, analysts are confident that the drop bottoms out at $8,000 as a reshape technical pattern has been formed.

Bitcoin (BTC) Value Forecast — May 10

BTC/USD Major Bias: Bearish

Supply Levels: $9,000, $9,500, and $10,550

Demand Levels: $8,000, $7,500, and $6,800

Although Bitcoin fell about 18% the 100 and 200-day moving averages served as powerful supports against a further decline in price. BTC is also supported by an ascending trendline which has helped for some days now. However, should Bitcoin drop below this line, we could see price dropping lower to the mid-$7,000 levels.

On the flip side, should price take the $9,500 resistance again, we could see further gains into the $11,200 – $12,000 levels.

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