The sudden drop of Bitcoin (BTC) from 2022 highs has caused a series of massive liquidations in the market. Long positions have seen some of their biggest purges this year.

BTC dropped from around $48,000 this year's high to $42,400 in a little over a week. BTC's sharp decline is attributed to the Fed's aggressive measures to lower prices this year, along with growing concerns about inflationary pressures. Weakness in BTC also spilled over into the broader crypto market, bringing its total market cap back to under $2 trillion by Saturday.

Highest number of BTC longs liquidated since January

BTC's drop below $45,000, considered an important support level, resulted in the highest number of longs liquidated since mid-January. Data from Coinglass showed that over $101 million of long positions were liquidated on Wednesday as BTC fell below the support level. Nearly $222 million of long positions have been liquidated in the past six days.

Total Liquidations-1

Even by Saturday, when crypto trading volumes were generally low, BTC longs were being liquidated on a large scale. 73% of $64 million BTC positions liquidated in the last 24 hours were long positions.

Analyst Michael Van De Poppe Argues BTC Will Rise

Michael Van De Poppe, an analyst closely followed by cryptocurrency investors, evaluated the recent movements of Bitcoin. Unlike many analysts and experts, Poppe says he expects the leading cryptocurrency to make a splash in the future.

Stating that according to the Fibonacci correction, the $ 41,000 region coincides with the 0.5 extension, the popular analyst thinks that Bitcoin will bounce from this level and display sharp upward movements. Saying that $ 46,800 should be followed in possible upward movements, the popular analyst believes that breaking this level will make the crypto market lush.

Crypto Graph

Underlining that if this resistance is broken in a voluminous way, the leading crypto money will rise to the $ 56,000 resistance with altcoins, Poppe expects the possible rally to end at these levels. Believing that $ 56,000, which corresponds to 1.618 according to the Fibonacci correction rates, will not be broken, Poppe underlines that if this level is broken, the leading crypto money will not wait for the halving in 2024 and start a new mega bull.