BTC bulls have a chance to profit from this week’s $410 million options expiry, but the factors pulling down equities markets reduce the chance of Bitcoin changing its trend.
More Than 57,000 Traders Liquidated As Bitcoin Declines Below $22,000
The price of bitcoin has once again fallen below $22,000 once more. As expected, it has come with its own consequences for those in the crypto market. Most prominent have been in the liquidations, which have ballooned in the last 24 hours. With the most recent crash, more than 57,000 traders have seen their positions liquidated.
Bitcoin Dip Triggers $151 Million Liquidations
Over the last 24 hours, more than 57,000 traders have been liquidated in the crypto market. This has led to a total of $151 million in assets liquidated over the last day. The most prominent of these has been the Ethereum liquidations.
Ethereum, which had taken the lead during the market recovery and rallied higher than $1,600, had led the short liquidations and now, continues to lead in terms of long liquidations. Ethereum liquidations alone have crossed $70 million in the last 24 hours and $20 million in the last 12 hours.
Related Reading | TA: Bitcoin Price At Clear Risk of Sharp Drop, Indicators Turn Red
Others include bitcoin, which has only seen half the volume of liquidations compared to Ethereum. In total, there have been more than $30 million in bitcoin liquidations in the past day, accounting for 1.38K BTC. This makes it the second-largest liquidation for a digital asset in the last day. The majority of liquidations have been from long traders at 63.96%.
BTC price falls below $22,000 | Source: BTCUSD on TradingView.com
FOMC Looms Over Market
The recovery that had been rocking bitcoin and other cryptocurrencies has been stopped dead in its tracks as the week opened. There are various factors behind this decline such as large corporations announcing earnings and showing that they had dumped a lot of bitcoin.
Related Reading | TA: Ethereum Stuck In Key Range, Why $1,480 Is The Key
Additionally, the FOMC is starting on Tuesday, and the announcement is expected to be made on Wednesday. So basically, while this is turning out to be a big week for the financial market, it doesn’t necessarily mean that the market would see any good price action.
Bitcoin had also not been able to beat its 200-week moving average, and the resistance faced at this point has brought the price to a lower support point. This has marked a bearish trend for bitcoin, meaning that the digital asset will likely test $20,000 in the coming days.
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Large institutions sold $5.5B in BTC since May — and we’re still here
Massive sell-offs from institutions appear to have been the driving force behind the drop in Bitcoin price since May, according to an analyst from Arcane Research.
Short Liquidations Climb As Bitcoin Recovers Above $20,000
Bitcoin had lost its footing above $20,000 at the start of the week, sparking uncertainty among investors who had previously believed that the price of bitcoin was in a recovery trend. This decline saw more sell-offs in the space, albeit to a lesser extent than previously recorded. With the digital asset now starting on another recovery trend though, traders who had bet against its ability to move upward are finding themselves in very unpleasant situations.
Bitcoin Short Traders Suffer Losses
Bitcoin had begun to recover just after the CPI had shown that the United States inflation rate had hit a new 40-year high. At 9.1%, it was the highest number ever recorded since 1981 and this had prompted investors to look to other alternatives for protecting their wealth from being eaten into by inflation. The result had been an influx of new money into the bitcoin market.
Related Reading | Bitcoin Price Spends Four Weeks At 2017 Peak Prices, What Comes Next?
The recovery had seen a lot of traders who had bet against bitcoin suffering losses. Data from Coinglass shows that in the last 24 hours, almost $200 million in liquidations have been recorded and the majority of the liquidations had been from short traders. In total, there have been more than 57,800 traders liquidated and at a percentage of 83.91%, more than 48,000 traders who were betting against the crypto market’s recovery have suffered losses.
BTC price recovers above $20,000 | Source: BTCUSD on TradingView.com
Even as time has gone on, the liquidations have not subsided. In the last 12 hours alone, the liquidation numbers have come out to more than 54 million. At the time of writing this, the last four hours had seen liquidations of $21 million and this is expected to ramp up as the recovery continues.
Ethereum Takes The Lead
In most cases, when the market liquidations are calculated, bitcoin always takes the lead. However, that is not the case this time as another has taken the lead in liquidations. Ethereum’s recovery over the last day had been just as dramatic as that of bitcoin and short traders were caught in the wave.
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The second-largest cryptocurrency by market cap accounts for the majority of the liquidations recorded in the last day. It has seen more than 72.64K ETH liquidated, amounting to more than $90 million. Bitcoin which usually leads the pack has only seen half the value of liquidations in the same time period.
ETH liquidations ramp up | Source: Coinglass
The same is the case on a 12-hour basis, although bitcoin is catching up in this regard. Ethereum continues to lead but by a much smaller margin.
Other cryptocurrencies that have recorded high liquidations in the last day include MATIC, SOL, and AAVE with $8.52 million, $5.93 million, and $2.81 million respectively.
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Ethereum Liquidations Ramp Up As Price Struggles To Hold $1,100
As the market ushers in another week of trading, the price of Ethereum has been struggling to hold above $1,100. This coveted point which it had broken last week remains an important technical level, which is why bulls continue to fight to hold it. However, with the decline of the digital asset’s price below $$1,200, its liquidations have been ramping up and in the last four hours, it had briefly surpassed bitcoin as more traders lose their positions.
Over $30 Million Ethereum Liquidated
Ethereum liquidations shot past bitcoin liquidations as its price continued to decline. In the last 24 hours, there have been more than 28,000 ETH liquidated as the market declines. This follows the general liquidation trend in the market given that the price of Ethereum had failed to test $1,500 as expected. In total, more than $32 million ETH had been liquidated from traders across the last day.
The same streak was recorded in the pioneer cryptocurrency, Bitcoin, whose liquidations had reached $35 million in the same time period. This translated to 1,740 BTC positions liquidated in this time period, and other altcoins had followed the same losing streak.
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In total, the crypto market has seen more than 118 million in liquidations. While over 46,000 traders have been rekt in the same 24-hour period. Most of these traders have been long traders who were seemingly following the recovery trend that had rocked the space towards the end of last week.
Is ETH In Full Recover?
Ethereum has been doing quite well lately. The digital asset has been able to fend off the bears which have tried to drag down the price below $1,000 and had maintained the fight through last week. This had brought it above its 20-day moving average and had set it for a bullish trend for the first time in a month.
ETH trending above $1,100 | Source: ETHUSD on TradingView.com
However, this was only short-lived as the low liquidity of the weekend had gotten to the digital asset. ETH had fallen below $1,200 and even now continues to struggle to hold $1,140 after losing its fight at the $1,160 support.
Related Reading | Crypto Traders Lose $280 Million Following Bitcoin’s Break Above $22,000
This puts the next support at $1,100, where the bulls have been mounting up. However, it has also pushed its significant resistance point backward to $1,277 which would trigger a tug of war. As such, ETH’s immediate future remains hard to predict.
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“Buy The Dip” Sentiment Fails To Save Crypto Market, New Data Reveals Why
Since crypto prices have fallen to their lowest point, now is the ideal time to “Buy-the-Dip.” But during these brief price declines, traders appear to be shorting cryptocurrency more than they are buying it.
“Buy-the-Dip” Sentiments Does Not Stop Crypto Shorting
More short sales or shorting occur in altcoins than in bitcoin. In the past day, short holdings in Bitcoin (BTC) have averaged roughly 51% across exchanges, while short positions in altcoins have averaged about 55%.
BTC/USD hovers around $20k. Source: TradingView
Santiment, an on-chain analytics tool, states that data on the average funding rate for Bitcoin and altcoins relative to the price of bitcoin shows that traders continue to short altcoins at every minor decline. The long/short ratio for Bitcoin, in contrast, is unchanged despite price swings.
“As prices gradually fell on Sunday, traders have shown that though they may proclaim to be buyingthedip, they are shorting more on these mini drops. Interestingly, this only applies to altcoins right now, indicating that Bitcoin is being flocked to as the safe haven.”
According to Coinglass data, traders kept shorting crypto on Monday. In the last 24 hours, a $25 million liquidation of Ethereum (ETH) witnessed 56 percent shorts. Polkadot (DOT), Solana (SOL), XRP, Cardano (ADA), and BNB, meanwhile, saw 55 percent, 59 percent, 63 percent, 67 percent, and 53 percent shorts.
Related reading | Bitcoin Perpetual Open Interest Suggests Short Squeeze Led To Crash
Bitcoin and Altcoin Short Selling. Source: Santiment
It’s interesting to note that in the past 24 hours, short positions in Tether (USDT) have increased by 85% across exchanges. Some short sellers think that Chinese real estate brokers back the majority of Tether’s assets in commercial paper. Since the previous month, USDT has experienced significant redemptions, causing its market cap to drop close to $66 billion.
Amidst a dim market outlook, hedge funds are also progressively shorting the U.S. dollar-pegged stablecoin Tether (USDT).
Liquidation OF Altcoins Rises Amid Short Selling
Liquidations are also increasing as traders continue to short altcoins. Altcoins that were actively traded in the morning are currently in the negative. Due to a recent increase in liquidation, the price of Ethereum (ETH) has decreased by around 4% during the past 24 hours. Other altcoins have also given up gains and are currently declining.
Related reading | Doom To Fail: Tether Shorts Pile In As Hedge Funds Seek To Profit From Crypto Winter
Crypto Liquidations Settle As Bitcoin Recovers Above $21,000
Crypto liquidations had ramped up following the market crash. Even with the recovery had come more liquidations as short calls had also taken a hit. However, with the recovery moving over the last week, the market has begun to regain some semblance of balance and so the liquidations have begun to settle.
Crypto Market Liquidations Relaxes
Although liquidations cannot entirely stop, the liquidations have begun to subside. It had fallen from over $1 billion in liquidations at the height of the market crash and has slowly but surely returned to normal levels. This is obvious in liquidations for the past 24 hours which continue to trend at around $150 million liquidated. Mostly, it has skewed towards long traders given that the market had recorded a dramatic dip in the early hours of Monday morning.
Related Reading | Market Wallows In Extreme Fear As Bitcoin Struggles To Hold $20,000
As expected, bitcoin and Ethereum take the lead for the digital asset with the most liquidations in this time period. Bitcoin alone has recorded more than $43 million in liquidations while Ethereum liquidations have come out to more than 24K ETH liquidated, amounting to more than $29 million in liquidations in the past 24 hours.
Total market cap below $1 trillion | Crypto Total Market Cap on TradingView.com
More than 74,000 traders have been liquidated in this time though, of which 69.73% were long trades. Okex and Binance exchanges have seen the highest liquidations. However, the largest single liquidation for the last day came from the Bitmex exchange on the XBTUSD with the trade coming out to $2.48 million.
Market Takes A Nosedive
Just as feared, the crypto market has lost most of the gains that it made last week. The swift decline in price had come following the return of faith in the market, indicating that the recent recovery had been a bull trap.
Related Reading | Bitcoin May Not Reclaim All-Time High For Another Two Years, Binance CEO
In this decline, Bitcoin had fallen sharply from above $21,000 where it had trended for the better part of the week and had fallen back to the $20,000 territory once more. The dip resulted in more than $500 lost from bitcoin’s value in a matter of minutes.
As expected, this has triggered liquidations across various exchanges which brings the total value to $156 million liquidated. Bitcoin liquidations are ramping up on the one-hour chart with $28 million recorded over the same time period, coming out to 1,360 BTC liquidated.
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Over $250 Million In Liquidations As Bitcoin Recovers Above $20,000
Liquidations have rocked the space as the price of Bitcoin has fluctuated between red and green in the last week. Since the price had been crashing for the major parts of last week, the liquidations have been heavily skewed towards long traders. This trend has now changed as short traders’ liquidations have ramped up in the past week owing to recovery above $20,000.
Short Liquidations Ramp Up
Coming out of the weekend, the price of bitcoin has been doing much better than it was during the weekdays. This has now turned the tide of liquidations towards the short traders. These sorts of positions had ramped up as the price of the digital asset had declined, causing some to believe that it was going to continue. However, the price of the cryptocurrency seems to have found its footing above $17,000 and had made a bounce-off from there.
Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In?
As of the early hours of Monday, the price of bitcoin is resting in the mid-$20,000s. At the same time, liquidation volumes remain large in the market. The past 24 hours have seen more than $250 million liquidated in the market. At the same time, about 80,000 traders have lost their positions, the majority of whom have been short traders at 63.56%.
Liquidations pass $260 million | Source: Coinglass
About $100 million worth of bitcoin has been liquidated in the same time period, coming out to 4,800 BTC. While Ethereum liquidations have also ramped up with $82.47 million in liquidations in the same time period.
Altcoins such as SOL, DOGE, and GMT are also feeling the heat, returning large volumes to liquidations. OKEX crypto exchange has seen the most liquidations with $96.25 million in the last 24 hours, with Binance in second place with $76.08 million.
Bitcoin Price Stays In The Green
Bitcoin had closed the last week in the red after finally ending its nine-week red streak the prior week. This close had come with a lot of negative implications, pushing the price of the digital asset to yearly lows. However, this storm has begun to pass with the recovery in price.
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The weekend had seen a ramp-up in buying since the price of the cryptocurrency had dropped to the $17,000 level. This provided a much-needed bounce point as support had begun to form. What would follow was a $3,000 gain over the next two days that brought the value of the digital asset close to $21,000 once more.
BTC trending in the mid-$20,000s | Source: BTCUSD on TradingView.com
But even as the bulls have struggled to take a hold of the market, their efforts have been met with much opposition. Significantly at the $21,000 where there is now the most resistance. A break above this point will likely see the digital asset touch $25,000 before the end of the week. Hence the opposition.
On the other side is the first support level for the digital asset which has now formed at $20,150. However, with the selling sentiment still so strong among investors, it is doubtful that bitcoin will be able to hold for very long at such prices.
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Ether Drops Below $1K, Dragged Down By BTC Slide – What’s The Next ETH Support?
The cryptocurrency market is still stunned by last week’s precipitous decline. In 10 days, Ether shed around 45 percent of its value.
On the four-day chart, the Ethereum (ETH) price has now returned to the historical RSI low recorded in 2018 when the cryptocurrency traded at $81.
On Saturday, ETH values fell below crucial levels and are currently trading in the triple digits as the recent crypto sell-off continued.
According to data provided by Coingecko, as of the time of writing, ETH is trading at $1,008, a decrease of about 40 percent over the past week.
Suggested Reading | Bitcoin Breaches $19K Level – Will Selloff Continue? What’s The Next Bottom?
Ether Drops To As Low As $997
ETH is currently selling at $997.61 on Etherscan, a decrease of approximately 9 percent over the last 24 hours. The breach of this support level is expected to presage heavier losses for Ethereum.
The bears are in complete control of the market, and there are no major buyers. In the bearish scenario, if sellers force the price below $900, the probable demand zone is between $700 and $900. Upon reaching this region, ETH may enter the accumulation phase.
Currently, inflation, a wobbly stock market, rising interest rates, and worries of a recession are fueling negative sentiment on the stock and cryptocurrency markets.
ETH total market cap at $122 billion on the daily chart | Source: TradingView.com
A Shot At $1,700 In A Bullish Scenario
In a bullish situation, ETH will certainly approach $1,700 in static resistance. The ability to overcome this barrier depends on the purchasing power of the market.
This eventuality seems unlikely given that the current macroeconomic climate has caused investors to view high-risk assets with skepticism.
Recent reports indicate that Ether’s developers have opted to delay the network’s move to a proof-of-stake (PoS) consensus while the bear market persists.
This improvement is anticipated to terminate the reliance on proof-of-work (PoW) mining and the Merge scalability solution, which has been in development for six years.
Suggested Reading | Bitcoin At $20K Could Be ‘New Bottom,’ Commodity Expert Suggests, And Here’s Why
Heavy Market Liquidation Pulls Down ETH
The recent decline of ETH, the second-largest cryptocurrency, is due to the liquidation of a significant investment, possibly by Three Arrows Capital. The liquidation led to a substantial sum of ETH being unloaded on the open market.
After the Federal Reserve raised interest rates by 75 basis points, the highest increase in the last three decades, the stock market inched up Wednesday afternoon.
According to Edward Moya, a senior market analyst at OANDA, the fact that the cryptocurrency market did not follow is “worrying for some investors.”
Analysts estimate that Bitcoin and Ether can decline up to 85 percent during bear markets.
Due to the impossibility of market prediction and timing, there is never an “ideal” time to buy in cryptocurrencies. However, according to analysts, now could be a good time to enter the market because prices are cheap.
Featured image from Arch20, chart from TradingView.com
More Than 253,000 Traders Liquidated As Crypto Bloodbath Continues
The crypto bloodbath has left thousands of traders in a bad way. A rapid decrease in price has seen more than 240,000 traders rekt in the span of 24 hours. As the downtrend continues, more investors are added to the long line of losers, most of which have been long traders. As it stands, there are now almost a billion dollars that have been liquidated in the market so far and this number continues to climb with bitcoin declining below $24,000.
Over $940 Million In Crypto Liquidated
Over the last 24 hours, the liquidations that have rocked the crypto market have been nothing short of brutal. Most of the liquidations have come from the largest digital assets in the space but Bitcoin has borne the brunt of it once more.
The long traders who were hoping for further price recovery had been hit hard in the space. Although the majority of liquidations have been long liquidations, it doesn’t mean that short traders have been spared either. What has occurred has been that as the price fluctuations continue, a lot of traders have been blindsided and had their positions liquidated in a flash.
Related Reading | U.S. Macro Pressure Responsible For Entire Bitcoin Downtrend
So far, there have been a little over 253,000 traders liquidated in the past day alone but these numbers are rapidly growing. Data from Coinglass shows that $596.99 million in longs have been liquidated, accounting for 63.25% of all rekt volume. While $346.86 million in shorts have been liquidated, making up the remaining 36.75% of losses.
Market cap losses more than $100 billion | Source: Crypto Total Market Cap on TradingView.com
Bitcoin, Ethereum, Record Massive Losses
As expected, the big players have seen the most losses in the past 24 hours. What is more interesting is the volume of digital assets that have been lost by traders. For bitcoin alone, there have been more than 16.84K BTC liquidated. This comes out to $399.38 million. As for Ethereum, it tells an almost identical story with 298.96K ETH liquidated which totals $356.82 million.
Related Reading | Head To Head: Bitcoin, Ethereum Profitability For Investors
The smaller altcoins have not been spared from the onslaught either. Solana which has been one of the worst losers when it comes to the market downtrend has seen this translate into liquidations. With the digital asset finally dropping below $30, long liquidations have ramped up, leaving traders losing 699.32K SOL or $18.59 million in the past 24 hours.
Other top losers include FLM with $11.99, GMT with $7.86 million, ADA with $7.53 million, and TRX with $5.85 million. Other notable assets also recorded losses to a significant degree with XRP, LUNA, DOGE, and AVAX seeing $5.54 million, $5.19 million, $4.84 million, and $4.72 million in liquidations respectively. Litecoin completed the top 12 with liquidations of $4.60 million.
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Ethereum Single-Day Liquidations Reach Three-Year High As Price Breaks $1,900
Ethereum is back on another winning streak as it breaks above $1,900. This follows a weekend that was mostly characterized by low momentum but would eventually turn for the better. In the wake of this, there have been a lot of short liquidations in the market due to the recovery. However, the liquidations in Ethereum hit a new three-year high when thousands of short positions were liquidated on the Bitfinex cryptocurrency exchange.
Bitfinex Short Liquidations Grow
The Bitfinex crypto exchange is one of the largest exchanges in the world and is highly favored by both amateur and professional traders. This is why liquidation volumes are oftentimes pronounced on the platform. However, Monday’s liquidations would pose a new record for the market given that Ethereum liquidations alone had surged past $600 million.
Related Reading | Bitcoin Dominates Derivatives Market To End May On A High Note
This pushed the digital asset into the largest daily liquidations in three years. In total, there were more than $690 million in Ethereum shorts liquidated across various exchanges. Shorts made up 99.5% of these liquidations that were recorded over a four-hour period. However, the majority had come from the Bitfinex crypto exchange. It came out to almost $670 million liquidated on the exchange as ETH had barreled past the $1,900 level.
Other cryptocurrencies such as Bitcoin had taken a hit in the same timeframe but none close to the degree to which Ethereum traders had been liquidated. It shows that sentiment is turning towards the positive it comes to the long-term for the digital asset.
Ethereum Standing Its Ground
Ethereum has been on a recovery trend alongside Bitcoin. This has shot the digital asset above its 20-day moving average. Making its way above $1,900 remains an important point for ETH which has recently been struggling with the $1,700 level. It also marks the only green close in recent weeks for the digital asset as it had been closely trailing the price of Bitcoin.
ETH price breaks above $1,900 | Source: ETHUSD on TradingView.com
Liquidations in Ethereum have eased up, however. The four-hour period where the Bitfinex short liquidations had rocked the market had quickly passed, paving way for more reasonable liquidation volumes. Presently, liquidations across the crypto market sit at less than $130 million for the last 24 hours.
Related Reading | Institutional Investors Turn To Competitors As Ethereum Tumbles
Ethereum has since gone back to trailing behind Bitcoin when it comes to liquidations. The pioneer digital asset has seen traders lose $44.4 million in the past one day at the time of this writing while ETH traders have recorded $32 million in losses. A total of 48,219 traders have been liquidated and Bitfinex still maintains the largest single liquidation with a total of $2.06 million from a single trade.
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$32K Bitcoin price could turn the tides in Friday’s $160M BTC options expiry
BTC price lost the momentum that pushed it to $32,300 on May 31, but this week’s option expiry could help bulls recapture the key price level.
Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000
The effects of the long liquidations that rocked bitcoin after the digital asset had fallen to $25,000 continue to be felt even now. Bitcoin which has since managed to recover above $30,000 once more remains a prime liquidation target in the market. Even now, a week after the crash that had seen it record its largest liquidation event in six, long traders are still being rekt in the markets.
Bitcoin Liquidations Touch $61 Million
Bitcoin long liquidations may have slowed down but they are far from over. In the last 24 hours, the market has seen more than 61 traders liquidated which has come out to more than $257 million liquidations in the last 24 hours. Naturally, bitcoin liquidations make up a large portion of this and long traders have been the worse hit in the market.
Related Reading | Exchange Inflows Rock Bitcoin, Ethereum As Market Struggles To Recover
Bitcoin liquidations touched above $61 million on Friday after a particularly brutal day of trading on Thursday. The majority of these had taken place in the mid-afternoon to early evening of Thursday that saw traders liquidate more than $30 million. This had been a result of bitcoin falling below the $30,000 level, a level which it will ultimately retake in the early hours of Friday.
Indicators had turned bullish for the digital asset after this recovery. Even though long traders had seen the most losses for the 24-hour period, it was beginning to turn in their favor as short traders started taking more of the heat with time.
BTC recovers above $30,000 | Source: BTCUSD on TradingView.com
Crypto Market Still Red
Liquidations across other cryptocurrencies such as Ethereum had also been significant in this same 24-hour period, although not to the same extent as bitcoin. In total, there have been $29 million in Ethereum liquidations over the last 24 hours and $7.16 million on the 12-hour chart.
Related Reading | More Stress For El Salvador As Bitcoin Dips To $29,000
The broader crypto market liquidations touched as high as $258 million as of the time of this writing. Data from Coinglass shows that 73.55% of this figure has been made up of long liquidations. 40.28% of these liquidations have come from crypto exchange Binance, where long liquidations were of a similar percentage. On Okex, 81.54% has been from long liquidations and has made up the majority across various exchanges as well.
Other digital assets that have seen large liquidations including GMT, SOL, and APE, are all being driven by the recent downtrend. Bitcoin has recovered above $30,000, ETH is back above $2,000, and this is facilitating a change. The most recent liquidations on the 4-hour chart have been made up of shorts as sentiment begins to turn positive among investors.
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Crypto Liquidations Reach $1 Billion As Sentiment Falls To 10-Month Lows
The crypto market has been subject to large liquidation following the price crash. Coming out of the weekend, the market had recorded one of its worst crashes which saw bitcoin fall below the $30,000 territory for the first time this year. With this had come hundreds of millions in short liquidations. However, the bloodbath seems far from over as the market continues to crumble and liquidations have now run over the $1 billion mark.
Crypto Traders Getting Rekt
After the crash that rocked the market coming out of the weekend, crypto traders had taken a hard hit. However, like always, this is always skewed to one demographic, and long traders had taken the hit with 77.5% of longs making up the majority of the $421 million liquidation figure that had been recorded on Monday.
Related Reading | Bitcoin Price Hits Three-Month Low, What’s Driving This?
With Tuesday now on the horizon has come even more challenges for traders in the space. While most speculated that bitcoin would not fall to $30,000, it had done just that and even fell briefly to the $29,000 territory before recovering once more. The damage would be done though as more traders would see their positions liquidated in the market.
This number has now gone above $1 billion liquidated in the past 24 hours with Bitcoin and Ethereum traders bearing the brunt of it. Once again, long positions continue to dominate the liquidations as bitcoin struggles to find its footing and recover. The numbers are slightly better in favor of long traders falling from 77.5% on Monday to 71.8% on Tuesday.
Crypto liquidations surpass $1 billion | Source: Coinglass
The total amount of liquidations sits at $1.10 billion at the time of this writing. Longs account for $789.27 million and shorts came out to a total of $310.04 million. Bitcoin and Ethereum continue to rival one another with $354.77 million and $326.51 million in liquidations respectively.
Market Sentiment Dives To Hell
Along with the crypto market crash has been the dip in market sentiment. This really is no surprise as sentiment has been moving consistently into the negative for the past couple of weeks. However, the market crash has accelerated this movement.
The Crypto Fear & Greed Index now has a reading of 10. This is one of the lowest that the index has ever been in the past year. With the number so low, it puts the market in the extreme fear territory. This means that investors are warier than ever to put money into the market, with some opting to liquidate their holdings in order to avoid more losses.
Related Reading | Ethereum Miners Surpass Bitcoin Miner Revenue By $224M
One thing to note though is that low sentiment can also be a prelude to a bull rally. The last time the index was this low was in July 2021. What followed was a recovery that eventually served as the lift-off point for bitcoin hitting its all-time high of $69,000. If history repeats itself, then this may very well be another start to a massive bull rally. That is if the bottom of the current crash has been achieved.
Crypto market loses over $1 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from ITPro Today, chart from TradingView.com
Over 110,000 Traders Rekt As Crypto Market Sees $120B Shaved Off
The crypto market recently saw a downturn that caused $120 billion to be taken off the total market cap in the space of a day. This obviously had caused panic across the market, triggering sell-offs from investors who were trying to save themselves from more losses. However, more than 110k traders would record hundreds of millions of dollars in losses as the downtrend had caused a cascading liquidation event.
Traders Lose $430 Million
The crypto market has recorded one of the largest liquidation events of 2022. On Thursday, the price of bitcoin had fallen below $37,000 hot to the news of interest rates being increased by 50 basis points in the just concluded FOMC meeting. This would be the beginning of a long day for crypto traders who had seen their trades liquidated into the hundreds of millions of dollars.
Related Reading | Ethereum Exchange Inflows Decline As Sellers Cool Off, Will Price Follow?
Mainly, the liquidations were long liquidations from traders who had placed their bets on the optimistic future price of various cryptocurrencies. The market would continue to tumble and the liquidations would continue to leave ripples in the market. In total, there has been more than $430 million in liquidations in the last 24 hours alone.
Crypto liqudaitions surpass $430 million | Source: Coinglass
Naturally, bitcoin led the market with its liquidations. The pioneer cryptocurrency which is favored by traders for being the market leader saw traders liquidated to the tune of more than $200 million in the span of a day. Long liquidations made up about 70% although short traders were not left out of the onslaught.
On the altcoin front, Ethereum led the pack with $69 million in liquidations. However, there were some other significant players in the space who had seen traders rekt beyond expectations.
GMT and APE, two coins that had been on the rise lately both saw more than $12 million dollars in liquidations respectively. Some might argue that they had seen the liquidations in APE coming due to the hype that had followed billionaire Elon Musk changing his Twitter profile picture to BAYC avatars.
Crypto market cap loses $120B | Source: Crypto Total Market Cap on TradingView.com
Nevertheless, it remains a sad day for the market. Sentiment has now fallen into the extreme fear territory leading to incredibly low momentum in the market. More notably is the fact that bitcoin now lies dangerously low on the $36,000-$38,000 support level.
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This point remains crucial for bulls to hold the digital asset above as a fall below $36,000 will likely set the digital asset on a path below $30,000. If this happens, bitcoin being a market leader will certainly pull the rest of the market down with it, which could see long liquidations of historical proportions rock the market.
Featured image from Physics World, chart from TradingView.com
Bitcoin bulls need to reclaim $41K ahead of Friday’s $615M BTC options expiry
BTC staged a small relief rally, but securing $41,000 is the key to determining whether or not the current sell-off has ended.
Liquidations Continue To Rock The Market As Bitcoin Breaks $47,000
Bitcoin liquidations had ramped up on Monday as the price of the digital asset had gone up drastically. These traders had been liquidated very fast with millions of dollars gone in a matter of minutes. However, it did not end there, given that the price of the cryptocurrency has not slowed down since then. And as the price of bitcoin has continued to grow, the liquidations have not slowed down either.
Bitcoin Liquidations On The Rise
Although the current liquidations are not as high as that recorded on Monday, they are still significant nonetheless. These liquidations had touched as high as $140 million for bitcoin, and once again have beat the $100 million mark in 24 hours.
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Most of these are short traders who had bet on the price of bitcoin coming down. As always, the market will do what it does and had gone in the opposite direction. But even after the expected slow down after surging past $46,000. Instead, the digital asset had continued on its recovery trend. After successfully breaking above $47,000, the short liquidations had ramped up once more.
BTC settles above $47,000 | Source: BTCUSD on TradingView.com
In the last 12 hours, BTC alone has seen more than $14 million in liquidations. While the 24-hour time frame paints a grimmer picture. Over $119 million in liquidations have been recorded in the past day. Most of these have been from short traders who have been betting against the recovery trend. As the price of BTC barrels toward $48,000 once more, the short liquidation trend may be far from over.
Ethereum Traders Get Rekt
In the past day, Ethereum traders have gotten the short end of the stick compared to bitcoin traders. These short traders saw the worst of it as more than $25 million was lost in less than an hour. It quickly put ETH ahead of the curve when it comes to liquidations given that most of the liquidations have come from ETH traders.
For the largest single liquidation in the past day, ETH also took the cake. This time around, there was a single trade worth $10.10 million that was liquidated. This took place on the FTX exchange across the ETH-PERP trading pair. It ran up the numbers for Ethereum, with $25.07 million and $50.41 million liquidated in the past one and four hours respectively at the time of writing this article.
ETH liquidations surpass bitcoin | Source: Coinglass
On the 12-hour scale, there have been a total of $55.70 million in liquidations for Ethereum. Additionally, the number for the last 24 hours now sits at $145.47 million, more than $20 million higher than that recorded for bitcoin.
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Total market liquidations have all come out to $441.11 million in the last day. With a total of 84,388 traders liquidated and counting.
Featured image from MARCA, chart from TradingView.com
Short Traders Decimated As Bitcoin Barrels Past $43,000
Bitcoin has surprised the market with its recent surge. The digital asset which has been struggling below $40,000 for the past week made a break for it with an incredible rally that saw its peak above $44,000. It took the market by surprise and no doubt the traders as liquidations have been the order of the day. Short traders have gotten the short end of the stick as they see hundreds of millions liquidated in the past day.
Bitcoin Liquidations Run Amok
Short traders have been dominating the market for a while now given that the value for the cryptocurrency has been trending low. This was made worse by the Ukraine-Russia crisis. Bitcoin had managed to hold its ground around the $36K-$38K level without slipping too low. Monday would however prove to be a deviation from the norm as the recovery took the market by surprise.
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On Monday, bitcoin had rallied past $44,000 in what can be described as a sharp ascent. Happening over a matter of minutes, short traders were caught unawares by this movement. As such, millions of dollars in short positions were liquidated and $40K price walls across exchanges were all brought down.
BTC on another recovery trend | Source: BTCUSD on TradingView.com
In total, over $100 million worth of bitcoin positions has been liquidated in the last 24 hours. The last 12 hours account for about 50% of this volume as the price continues to maintain upwards momentum. In total, there has been $147 million worth of BTC liquidations in the past 24 hours. Shorts account for the majority of this figure, although there have been millions in long liquidations, however to a lesser degree.
Altcoins Not Left Out
Not only has bitcoin recorded large liquidations over the last day, but altcoins have also recorded large liquidation volumes in the same time period. Naturally, bitcoin has suffered the majority of liquidations but that is expected as it is the most valuable asset in the space. However, this does not mean that altcoins have dodged the onslaught as they have also recorded over $100 million in liquidations.
Related Reading | TA: Bitcoin Rallies Over 12%, Why This Could Be Major Trend Change
Ethereum leads altcoins in liquidations as $58 million has been recorded over the past day. Same as Bitcoin, shorts have been the major contributors to this number as ETH has also recovered towards $3,000.
Crypto liquidations surpass $300 million in 24 hours | Source: Coinglass
An unlikely candidate, Luna, has come in third place in terms of liquidations. The native token of the Terra blockchain had seen $14 million in liquidations in the past 24 hours, over $6 million of which were recorded in the last 12 hours alone. The altcoin is up more than 20% in the last day, recording one of the largest increases in the recent rally.
Featured image from NationalWorld, charts from Coinglass and TradingView.com
Bitcoin price closes in on $40K, but pro traders are still skeptical
Traders expect BTC to flip $40,000 back to support soon, but derivatives metrics signal that a different outcome could occur.
Bitcoin Leverage: Lack Of Liquidations Could Indicate Another Wave Of Selling
Bitcoin finally broke below the $40K point this past weekend. This had sent the cryptocurrency back towards six-month lows. One thing though was that liquidations or the digital asset remained lower than expected. The current liquidation volumes lay well below the volumes that have accompanied previous crashes like this one. This could be a very important indicator for the market.
Bitcoin Liquidations Remain Low In Shakeout
Previously, whenever the price of bitcoin had dumped this hard, liquidation volumes have quickly risen. This is due to the massive sell-offs that follow such crashes as investors try to get out of a bleeding market. This time around, bitcoin liquidation volumes have not jumped. They remain really low, indicating that maybe investors were not done selling their holdings.
Related Reading | Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go
If this is the case, then there may be more downside coming as the week runs toward the end. Massive sell-offs have already sent the digital asset to lows not seen since mid-last year. Another round of sell-offs could end up pushing the cryptocurrency’s value down below $30K.
Last Friday, when the price of BTC had successfully broken below $40,000, the bitcoin futures and perpetual markets were rocked by liquidation. By the time the beginning of the weekend rolled around, over $854 million in long liquidations were already recorded. This may seem like a lot but compared to previous iterations of this type of shakeout, liquidations have fallen short.
BTC liquidation volumes fall short of expectations | Source: Arcane Research
May 2021 was the last time that BTC’s price had taken a similar plunge. In total, the market saw $4.8 billion worth of liquidated longs across the market. Indicating that the sell-off in May was more intense than those recorded in January of 2022. One explanation for the low liquidation volumes is that traders were able to re-allocate and add collateral to underwater trades, given that they’ve had more time to reassess their positions.
Where Are The Liquidations Happening?
Another reason for the low liquidation volumes could be the data available for analysis. Back in May 2021, crypto exchanges like Binance and ByBit had their bitcoin liquidation data out for anyone who wanted to have a look. Since then, there has been a change by both exchanges where they now restrict their liquidation. Now, analysts are having to guesstimate liquidation volumes using historical data from the exchanges.
BTC price begins uptrend | Source: BTCUSD on TradingView.com
Binance still retains dominance of the market, thus, not having access to the crypto exchange’s bitcoin liquidation data could severely affect the volumes of liquidations being reported. The crypto exchange’s dominance in the market has risen since before its data was restricted, suggesting an even larger pool of liquidations that are not being reported correctly.
Related Reading | Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC
Nevertheless, the liquidations have spilled into other spaces in the industry. Decentralized finance (DeFi) did not escape the onslaught in the least as it was also rocked by liquidations.
Featured image from Bitcoin News, charts from Arcane Research and TradingView.com
