1 Liquidation of long positions worth $323 million after BTC failed to break resistance at $110,000
2. Escalation of the conflict between Israel and Iran has triggered a risk-off sentiment
3. High financial leverage (20x) from major investors like AguilaTrades has increased market volatility
Detailed Analysis
1. Main Catalyst
On June 12, there was a liquidation of long positions worth $323 million (72% of total liquidations in the cryptocurrency market), the largest liquidation since May 29. This came after Bitcoin failed to break the resistance level of $110,000, a level it has not been able to rise above since reaching its peak price in May of $111,814 according to CoinMarketCap. Derivatives data shows a decrease in open interest by 2.3%, indicating a reduction in leverage.
2 Market Dynamics
Geopolitical tensions have escalated following an Israeli airstrike on Iran