‘This is clearly a forced liquidation,’ comments Jason Goepfert of the recent contraction

Bitcoin (BTC) which falls below $ 36,000 “it stinks of capitulation,“commented the analyst Michaël van de Poppe in a recent tweet.

“This is clearly a forced liquidation”

After collapsing ai minimum of 10 weeksIn line with Wall Street during the May 5 trading session, Bitcoin rebounded to levels last seen in February.

The decline in both cryptocurrencies and stocks, which followed a curious bounce following the Federal Reserve’s rate hike, appears to have been far greater than many traders expected.

The S&P 500 ended the day 3.5% down, while the Nasdaq 100 down 5%. The 10-year US Treasury futures, on the other hand, lost 1%: a rather rare event, which made experts think.

Jason Goepfert, founder of Sundial Capital Research, noted that a such a chain of events has occurred only twice in the last quarter of a century: during the 2008 global financial crisis and following the March 2020 collapse caused by COVID.

Someone exploded, this is clearly a forced liquidation,has explained to his Twitter followers:

“There have only been two days in the past 25 years where S&P 500 futures fell 3% and 10-year Treasury futures fell 1%:

October 9, 2008
March 18, 2020

Someone has exploded, this is clearly a forced liquidation. “

Therefore, the chain reaction in Bitcoin may have been the capitulation event that many had previously claimed was necessary given the changing economic conditions in the United States.

I stink of capitulation, or at least the signs seem to indicate this,“commented Van de Poppe. The analyst also pointed out that the drop in BTC / USD also produced the 4-hour candle with the highest volume since the beginning of December.

The data of Cointelegraph Markets Pro And TradingView show that calm has now returned to the markets, after last night’s collapse.

BTC / USD, one hour candlestick chart. Source: TradingView

Bitcoin, long liquidations lower than January highs

However, if you look at the impact of this downturn on HODLers, it appears that a total market reset has not yet taken place.

Liquidations have remained fairly modest among cryptocurrencies: BTC has liquidated $ 190 million in the past 24 hours. This is the highest daily value in recent months, but still lower than the cascading liquidations in January, when the price slipped to $ 32,000.

The remaining $ 200 million comes from altcoins, as the following chart shared by shows Coinglass

1651896306 729 This is clearly a forced liquidation comments Jason Goepfert of
Crypto liquidations. Source: Coinglass

Regardless of what I may ever say about the short term, macro factors remain bearish,“summed up the well-known Crypto Chase trader:

“There will be bounces, pops, squeezes, short-term euphoria and so on … but I don’t think we will see a macro reversal before a major capitulation OR a change of direction by the Fed on rates, QT and balance reduction. “

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‘This is clearly a forced liquidation,’ comments Jason Goepfert of the recent contraction

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