Data shows a large amount of Bitcoin short positions have been liquidated following the cryptocurrency’s surge to the $79,000 level.
Bitcoin Surpasses $79,000 for the First Time since Early February
Bitcoins have seen an increase in popularity. continuation The price of bitcoin has risen to $79300 in the past 24 hours, despite its bullish recent momentum. This chart illustrates the current trajectory of this cryptocurrency.
Bitcoin attempted to make a recovery attempt last week as well, but it fizzled when the asset reached the $78,000 mark. The cryptocurrency has risen to new levels, not seen in the early days of February.
Due to the sharpness of the rally, the derivatives market has seen a wave chaos.
BTC liquidations have piled up on exchanges in large numbers
Data from CoinGlassBitcoin is a popular cryptocurrency after the recent volatility. “Liquidation”Here, the term refers to a contract that is closed after it suffers losses.
Here is a heat map that compares the liquidations of the different assets.
Bitcoin appears to have been the main contributor for the liquidation of the markets, as usual. More than $222 millions in positions related with the asset were flushed out in the last day. Around $205 million were short positions, which means that the majority of liquidations came from bearish bets.
The fact that shorts are the side most affected is due to the sharp rise in cryptocurrency within this time frame. Ethereum’s second largest derivatives liquidation, $115,000,000, was also largely accounted for by shorts, who accounted for $99,000,000 of that amount.
Over the past 24 hours, digital assets as a sector have seen a total of nearly $449 millions in liquidations.
From the table, it’s apparent that $365 million or over 80% of these liquidations involved short positions, reinforcing the bullish wave that the sector as a whole has seen in this period.
A mass liquidation event like today’s is popularly known as a squeeze. The latest event, which involved a majority of shorts would be called an short squeeze. In general, the events start after an initial surge of liquidations is triggered by a sudden swing in price. This move then causes more liquidations to occur in the market.
In the cryptocurrency sector, these events aren’t exactly a rare sight due to the volatility that coins tend to see on the regular and leverage use being widespread among derivatives traders.
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Source: www.newsbtc.com
