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.
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 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.
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.
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.
Featured image from Channels Television, chart from TradingView.com