More than $200 million dollars in long positions were liquidated on BitMEX as a result of Bitcoin’s violent swing to $7,400 yesterday.

Traders who were relying on the $7,900 support to hold will be wondering where it all went wrong this morning as Bitcoin dropped by another 8%.

The world’s largest cryptocurrency in terms of market cap is now 46.5% down from its yearly high of $14,000 in June and 26% down over the past month.

The chart is certainly grim viewing for Bitcoin bulls as the 50 EMA is just days away from crossing the 200 EMA to the downside, which would result in a death cross and a subsequent correction.

There have been just two death crosses since 2014, both of which have resulted in 60% to 70% corrective moves to the downside.

As noted in Coin Rivet’s technical analysis article yesterday; $7,400 remained as the initial target before levels of support at $6,750 and $5,900 come into fruition.

Throughout the 2018 bear market $5,900 provided a stern defence for Bitcoin despite a wrath of sell pressure throughout the year.

For Bitcoin to propel itself out of this horrible rut it needs to hold above $7,450, which marked a top in September 2018 before a 60% decline, and rally back into the $8,800 region as that would invalidate the impending death cross.

However, a rally of 20% would be needed for that theory to come into fruition and following the scathing comments directed at Mark Zuckerberg’s Libra hearing yesterday, it seems very unlikely.

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