As a seasoned crypto investor who’s witnessed the rollercoaster ride of this dynamic market, I can’t help but feel a sense of exhilaration at the current state of affairs. The $118 million liquidations in the last day, with Bitcoin and Ethereum leading the charge, is reminiscent of a classic market shakeout – a spectacle that never fails to captivate me.
In the past 24 hours, approximately $118 million worth of cryptocurrency positions have been closed (or “liquidated”), mainly targeting traders who had bearish predictions. Bitcoin and Ethereum were most affected, with Bitcoin accounting for over $68 million in these liquidations, as indicated by the given liquidation map.
Approximately 88% of liquidations are happening among traders who have taken short positions, suggesting a significant purge of these positions. This suggests that short sellers are experiencing intense pressure and the market is leaning heavily in favor of bulls. The firms with the most liquidations, particularly in short positions, were Binance and HTX. Interestingly, HTX’s liquidations, which had a 98% short liquidation rate, were largely driven by short sellers. This suggests that the market’s bullish trend is strong and it seems that short sellers were caught off guard as Bitcoin’s price surpassed $64,000 again.
Examining Bitcoin‘s recent price trend suggests it has broken through the significant resistance at around $62,000 and is now approaching the psychologically important level of $64,500. Should it continue its current trajectory, the next major potential target lies around $68,000.
Caution is advised for traders as a potential reversal might take place if the price doesn’t clearly surpass $64,500. If that happens, the price could revisit the support level at $61,000. A closer look at the data shows a significant decrease in futures contracts, particularly on Binance, where around 4,000 Bitcoin worth of open interest has vanished.
This situation reveals that aggressive sellers (bearish traders) are facing pressure, resulting from the closure of excessively leveraged trades. Additionally, the heatmap indicates that this instance of forced liquidation is not an isolated event; other assets like SUI and SOL have experienced similar forced closures in the past.
A significant reduction in short positions, as indicated by widespread liquidation, hints at the potential for another bullish surge in the market. It’s essential for investors to monitor crucial resistance levels, specifically the $64,500 price range for Bitcoin. If Bitcoin breaks through this level clearly, it might signal more significant profits in the cryptocurrency market, with Bitcoin leading the charge.
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2024-10-14 17:11