More than $155 million in long positions have been liquidated on BitMEX following Bitcoin’s dramatic fall to below $10,000 overnight.

The price of Bitcoin fell by more than 5% before a slight bounce at $9,560. The move to the downside comes after numerous weeks of a tight consolidation pattern that has stagnated the price of Bitcoin.

From a technical standpoint, the next major level of support for Bitcoin is at $9,350, which is an area that has been respected three times since July 16.

A break down from this level would present price targets of $8,750, which is in confluence with the 200 EMA on the daily chart, and $6,800, which is residing by the weekly 100 EMA.

While it may seem that a 25% decline to these levels would signify a bearish transition in the market, a retest of previously untested moving averages following a parabolic advance is actually quite bullish, as it would provide a platform for a rally to yearly highs – providing price doesn’t fall below $5,900.

From a short-term perspective, Bitcoin needs to reestablish the $10,000 level of support with a breakout on significant volume.

Earlier this week, it was reported that the highly anticipated Bitcoin ETF application from VanEck/SolidX had been withdrawn, which was likely the cause of this morning’s move to the downside.

Bitcoin bulls will be hoping that Bakkt’s upcoming launch of Bitcoin futures will spur life back into the market, although it must be noted that the CME and CBOE’s launch of Bitcoin futures in December 2017 marked the top of the bull market, with prices subsequently taking a dramatic tumble.

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