As Bitcoin’s price fluctuated between green and red over the past week, liquidations are a common sight. Because the bitcoin price was crashing throughout the last week, liquidations tend to favor long-term investors. 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
The price of bitcoin is doing better since the weekend than during weekdays. The short-term traders have now seen a surge in liquidations. This was due to the fact that the cryptocurrency’s price had fallen, leading some people to think it would continue. The price of cryptocurrency appears to have stabilized above $17,000, and has made an upward move since then.
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Bitcoin’s price is currently hovering around the mid-$20,000s as of Monday morning. The market continues to see large liquidation volumes. Over $250 million has been sold in the past 24 hours. Around 80,000 traders lost their positions in the meantime, with the majority being short traders of 63.56%.
Liquidations pass $260 million | Source: Coinglass
In the same period, approximately $100 million of bitcoin was liquidated. This brings us to 4,800 BTC. Ethereum liquidations increased by $82.47million in that same time frame.
Altcoins like SOL, DOGE and GMT also feel the heat. They are returning large amounts to liquidations. OKEX has had the largest liquidations, with $96.25 Million in 24 Hours. Binance is in second with $76.08 Million.
The Green Keeps Bitcoin Prices in Check
Bitcoin ended the week in red, having finally finished its nine-week streak of red. The close of this week had many negative consequences, driving the price of bitcoin to its yearly lowest. With the price rebound, however, this storm is now over.
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This weekend was marked by a spike in purchasing, as the price of cryptocurrency dropped below $17,000. The support started to develop and this gave the cryptocurrency a welcome bounce. In the following days, the $3,000 gain would bring the digital asset’s value to nearly $21,000 again.
BTC is trending at mid-$20,000s| Source: BTCUSD on TradingView.com
Even though bulls tried to control the market for a while, there has been much opposition. The resistance is strongest at $21,000. If the price breaks above $21,000, the digital asset will most likely reach $25,000 by the week’s end. The opposition.
At $20,150 is now the support level. With the investor selling sentiment strong, bitcoin is not likely to be able hold at such low prices for long.
Featured Image from Channels Television. Chart from TradingView.com
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