$240M Liquidated As Bitcoin Rejects $70,000: 'Just The Test Pump,' Says Trader, But Not Everyone Agrees

Bitcoin's (CRYPTO: BTC) push to break the psychologically important barrier of $70,000 was short-lived, as the apex cryptocurrency almost immediately dipped 5% to a low of $66,600

What Happened: The volatile price action around all-time high levels caused liquidations of leveraged positions worth $240 million within an hour of trading.

According to CoinGlass data, $1.2 billion of positions were liquidated earlier in the week.

Adding to the market's challenges, nearly 1,000 Bitcoin worth of sell orders on exchanges such as Binance and OKX, valued at around $70 million, created a formidable barrier that stifled further price increases once Bitcoin breached the $70,000 threshold.

This resistance was a critical factor in the subsequent price correction.

Also Read: Bitcoin Spot ETF Inflows On Fire: Will Grayscale's Reign Be Overthrown?

Why It Matters: The price action has sparked discussion among cryptocurrency experts on social media.

Crypto analyst Michaël van de Poppe took to X, formerly known as Twitter, to express uncertainty about the future direction of Bitcoin, highlighting the recent removal of liquidity and the potential influence of economic data like the higher-than-expected unemployment rate.

He also suggested a potential correction in Bitcoin's price could be amplified by negative news events, while a period of consolidation for Bitcoin might present opportunities for altcoins.

Meanwhile, crypto investor Jelle offered a counterpoint on X, questioning whether the rapid sell-offs at the highs necessarily signal a bearish trend.

Jelle suggested these could be "test pumps" aimed at gauging market sentiment and expressed optimism for a potential future push into the $70,000 territory.

Price Action: At the time of writing, Bitcoin was trading at around $68,700, up 1.2% over the past 24 hours, according to Benzinga Pro.

Read Next: Ether Touches $4,000 Mark: Can Whales And Staking Fuel The Rally?

Image created using artificial intelligence with Midjourney.