Around $600 million worth of short bets were liquidated in a single candle during Bitcoin’s (BTC) remarkable liquidation series. The cryptocurrency community was shocked and thrilled by the rapid price action that drove the price of BTC to an astounding $39,700.
Will Clemente provided the graphic, which shows a trading pattern evocative of the September/October 2020 timeframe. Clemente raises the prospect that this rising trend may lead to a notable price change, or “pop,” implying that the current momentum may be the start of a more noticeable price shift. The market seems to be tense, with the possibility of either a strong reversal if key milestones are reached or a continuation of current positive trend.
Examining the liquidation data in detail, we find that the derivatives market has lost a significant amount of capital. The numbers are astounding, with $36.23 million and $32.50 million in liquidations in a 24-hour period for BTC and ETH, respectively, at the top of the list. These figures show how much losses bears were forced to absorb during the most recent decline.
The highest single liquidation order on OKX for BTC-USDT-SWAP was worth $1.96 million, demonstrating the significant risks associated with trading cryptocurrencies.
Concerns are also being raised by the real-time liquidations, with ORDIUSDT and ETHUSDT being two prominent examples of noteworthy symbols. Huge liquidations such as the one we have witnessed are only the consequence of excessive use of leverage and margin trading, which is very common among novice investors and traders who are not conversant with the fundamentals of risk management.
