Mind-Blowing Bitcoin (BTC) Price Movement Destroys $600 Million in Short Positions
Extraordinary Liquidation Series Hits BTC
Bitcoin (BTC) experienced an extraordinary liquidation series that wiped out approximately $600 million worth of short positions in just a single candle. This explosive price action pushed BTC’s price to a staggering $39,700, leaving the cryptocurrency community both stunned and elated.
Chart Analysis Indicates Potential Price Movement
The chart indicates a trading pattern reminiscent of the September/October 2020 period. Analysts suggest that the upward trend could lead to a significant price movement or “pop,” hinting at the possibility of a more pronounced price shift. The market appears to be in a state of tension, with the potential for either a continuation of the bullish trend or a sharp reversal if certain thresholds are met.
Substantial Capital Wiped Out in Derivatives Market
Delving into the liquidation data, we observe a substantial amount of capital wiped out in the derivatives market. BTC and other cryptocurrencies showed staggering liquidations within a 24-hour frame, reflecting the amount of losses bears had to take after the most recent plunge.
– BTC: $36.23 million
– ETH: $32.50 million
High-Stakes Liquidation Order
The largest single liquidation order, as shown on OKX for BTC-USDT-SWAP, was valued at $1.96 million, exemplifying the high stakes involved in the market.
Uncontrolled Leverage and Margin Trading
The real-time liquidations are also raising eyebrows, with symbols like ORDIUSDT and ETHUSDT being notable standouts. Large liquidations like the one we’ve seen are only a result of uncontrolled usage of leverage and margin trading, quite popular among beginner traders and investors who are not familiar with the basics of risk management.
This article was originally published on U.Today
