The bitcoin-to-dollar exchange rate fell to $8,520 in a massive overnight selling, extending its net week-to-date losses by up to 15.05 percent. The downside move came alongside a $$196 million worth of bitcoin liquidations on BitMEX, a crypto derivative platform that offers up to 100x leverage.
The drop, meanwhile, came as a part of a broader bearish correction trend. The price of bitcoin plunged by 19.03 percent after establishing a year-to-date top of $10,522, showing that the cryptocurrency is entering a new downside phase.
Poking Long-term Support
Bitcoin’s depressive action this Thursday also brought it closer to testing a long-term support area. As shown in the chart below, the cryptocurrency fell right before the blacked and bolded 50-period moving average wave, before pulling back weakly to the upside.