Bitcoin had broken above $40,000 again last week, marking the digital asset’s fifth break above this point this year alone. Given that it has been trending in its $36-$38k support level before this, traders had taken to placing their trades in anticipation of the cryptocurrency’s next movements. While the cryptocurrency had climbed to $42,000, this created positive sentiment but it was unable to overcome resistance.
Bitcoin Long Traders Suffer Losses
The market saw significant liquidations and a recent pullback in bitcoin’s price. Bitcoin, which had been expected to break the $42,000 mark in an early stage of its rise, has encountered more resistance than was anticipated. The bulls prevailed over the bears, and Bitcoin’s price dropped.
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Massive liquidations followed. Bitcoin saw over $20 million worth of liquidations in a matter of hours in just one hour. This was in the morning, Monday. The liquidations increased as bitcoin’s price dropped below $42,000 and reached as low as $40.889. BTC was now experiencing one of its longest hourly liquidations. Just as the asset dropped below $41,000, it reached almost $21million in longs liquidated.
Over $53 Million BTC were liquidated within 24 Hours | Source: Coinglass
As of the writing time, more than $31,000,000 in bitcoin has been liquidated within the last twelve hours. A wider range of bitcoins has been liquidated in the 24 hours that have passed.
Crypto Market is Suffering Liquidations
The investor mood grew as the bitcoin price and other digital assets became more green. Long traders trade with this optimism. Bitcoin had risen above its 50-day SMA and established another bullish trend. This one is predicted to continue for over $44K. As is the case with crypto markets, however, the asset’s value had dropped.
BTC starts a new recovery trend| Source: BTCUSD on TradingView.com
The rest of the market followed bitcoin’s lead and suffered the same fate. Even though other assets didn’t experience the same level of liquidation as Bitcoin, it was still a tsunami.
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Ethereum, the second-largest cryptocurrency according to market capital, saw more than $5,000,000 liquidated in the past 12 hour and totaled $27.37 Million over the 24 hours. Over the past 12 hours, total liquidations on the crypto market have reached $70.13 million. For the day ending on December 7, $167.72million was liquidated.
Bitcoin is now trading at $41,205, a break above $41k. As of the writing, Bitcoin is at $41,205.
Featured image taken from Finance Magnates.