On May 10, Bitcoin's price experienced a sudden drop of over $2,000 within just one hour, introducing a significant wave of volatility into what had been a relatively stable market. Leveraged long traders were particularly affected, as BTC plummeted from a high of $63,494 to an intra-day low of $60,308, catching many traders off guard. As of the time of writing, Bitcoin had suffered a more than 2.5% loss in value over the previous 24 hours.

Reacting to this abrupt price movement, Michaël van de Poppe, the founder of MN Capital, noted that Bitcoin's current behavior is part of a broader pattern of low volatility and choppy price action that has been observed since February 29. He interpreted this crash as Bitcoin returning "back to the important area of support," suggesting that failure to hold this support could lead to a further correction to the $52,000-$55,000 range.

In a similar vein, trader Daan Crypto Trades characterized Bitcoin's flash crash to $60,000 on May 9 as a swift move to "punish those longs that aped in above $63K." However, those who were betting on Bitcoin's continued recovery above $64,000 faced significant losses on May 10. The downturn resulted in the liquidation of $127 million in long positions within a 24-hour period, amounting to a total wipeout of $175.17 million, according to data from Coinglass.

The sudden drop in Bitcoin's price led to the liquidation of $9 million in BTC leveraged positions within the span of one hour alone, with $6.36 million of these liquidations attributed to long positions. This demonstrates the inherent risk associated with leveraged trading in highly volatile markets like cryptocurrency, where swift price movements can lead to significant losses for traders holding leveraged positions. As such, traders must remain vigilant and employ risk management strategies to navigate the unpredictable nature of the crypto market effectively.