Traders can track liquidation concentration levels. It helps identify where selling pressure or forced buying pressure may occur. This is often short-term support or resistance.
What you need to know:
- Bitcoin price falls just above $100,000 amid liquidations and macroeconomic concerns
- More than $2 billion in futures contracts were liquidated, with buy losses amounting to more than 80%, or approximately $1.6 billion.
- Despite the high volatility, analysts are optimistic about Bitcoin in the long term.
On Monday night, the price of Bitcoin fell just above $100,000. It rebounded slightly to $101,000 after forced liquidations and new economic concerns wiped billions of dollars of speculative value from the cryptocurrency market. At the same time, analysts believe that Bitcoin is now at risk of a correction and that there should be new factors to support the next surge.
More than $2 billion worth of futures contracts were liquidated in the past 24 hours, according to data from CoinGlass. Long traders accounted for nearly 80% of the total losses, or about $1.6 billion.
Liquidation occurs when a leveraged trader closes a trading position. This is because the margin is below the specified level. In the cryptocurrency futures market, this settlement occurs automatically. When the price moves in the opposite direction to the leveraged side. The system sells positions to the market to prevent excessive losses.
Large liquidations on the buy side often mean a “bow” in the market and can signal a short-term low. While many short positions are liquidated before short-term peaks where momentum reverses,
Traders can also use liquidation level data to identify forced trading areas. This is often short-term support or resistance.
The liquidation is one of the largest deleveraging events since September. This indicates market weakness after several weeks of consecutive price fluctuations.
Bitcoin fell 5.5% today and fell more than 10% last week. ETH fell 10% to $3,275. Solana (SOL) and BNB fell 8% and 7% respectively, while XRP, Dogecoin, and Cardano fell 5-6%.
The overall cryptocurrency market value has fallen to approximately $3.5 trillion. This is the lowest level in over a month.
Gerry O’Shea, head of global market analysis at Hashdex, said in an email to CoinDesk that Bitcoin is currently trading near the $100,000 level. In market conditions where investors start to become risk averse. This has far-reaching implications for digital assets, stocks and commodities.
He added recent speculation that the FOMC may not cut interest rates further this year. All of these factors, including concerns about tax access to credit and rising stock values, are putting pressure on the market. Additionally, selling by long-term Bitcoin holders is expected as part of the asset’s growth cycle.
In terms of liquidation, the Bybit platform had the highest closed position value with $628 million, followed by Hyperliquid with $533 million and Binance with $421 million. The largest single close was HTX’s purchase of $11 million worth of BTC-USDT.
Despite the market volatility, analysts still believe Bitcoin’s long-term prospects are positive. O’Shea added that the $100,000 level could have psychological implications. However, we do not view today’s price action as a sign that long-term investment conditions are weakening.
Meanwhile, the Federal Reserve continues to postpone interest rate cuts. Global risks remain vulnerable. Traders view the next few days as a critical test of whether Bitcoin’s rally will turn into a true recovery or whether it will face another wave of forced selling.
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This is a time when the cryptocurrency market is facing massive liquidations and extreme price fluctuations. Projects like Bitcoin Hyper have become a beacon of hope for forward-thinking investors. This is because it shows that Bitcoin’s development does not end with just storing value. However, we are moving towards an ecosystem that can actually generate profits. If the development team fully follows the plan, there are still opportunities for long-term growth.
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