Bitcoin Drops 4.5% to $93,400, $116.32M Longs Liquidated

Bitcoin experienced a significant price fluctuation over the past few days, reaching a high of $97,800 on May 2nd before dropping for three consecutive days to a low of $93,400. This downward trend resulted in the liquidation of approximately $116.32 million worth of long positions, indicating a high concentration of market leverage and a large-scale stop-loss triggered by the market pullback. The funding rate, which had been positive, turned negative, signaling a weakening of bullish sentiment among traders. As the price approaches the $93,000 support level, market sentiment is expected to become more cautious in the short term.

According to a Bitunix analyst, $93,000 is identified as the short-term support level. If this level is breached, there is a risk of a further drop to $90,000. The recent resistance zone is between $97,800 and $98,000. The analyst advises paying close attention to this week's economic data and the Federal Open Market Committee (FOMC) decision, as these factors could further drive market volatility. Traders are encouraged to adjust their positions flexibly to hedge against both macroeconomic and cryptocurrency market risks.