As the liquidation continues, Bitcoin long traders are under pressure

As the end of the year approaches, Bitcoin liquidation continues. This year’s liquidation has exceeded the 100 billion U.S. dollar mark, and even if 2022 arrives, it does not seem to stop. Given the recent downtrend, long traders have to bear the brunt. Since Bitcoin looks to be less than $50,000 at the end of the year, these losses will continue into this year.

Bitcoin liquidation continues

Data on 12 and 24 hour scales Coin glass Shows that Bitcoin liquidation has not really slowed down. As of the time of writing, this number has been climbing in the past 12 hours and has grown by more than $31 million in the same period. For 24-hour trading volume, this number is much higher, at $46 million, but it shows that the loss recorded in the past 2 hours is more than the entire day.

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This follows the general trend of 2021, which caused long traders to suffer huge losses in the market. Although these long traders can certainly make money due to the various bull market rebounds that the market has experienced, the crash was rapid and brutal, leading to rapid liquidation reaching billions of dollars.

BTC trading at $47K | Source: BTCUSD on TradingView.com

As short positions continue to drag the price of BTC down, Bitcoin short traders have performed well in the downtrend. Most of the clearing recorded for digital assets is for long traders. The highest trading volume comes from Binance, a cryptocurrency exchange, which, given its trading volume, has the majority of traders on the market.

Ethereum transactions are not excluded

Bitcoin traders are not the only ones affected by continued market clearing. Ethereum traders also bear a large part of the responsibility for this. Digital assets have also attracted traders’ attention within the time frame of 12 hours and 24 hours, and the liquidation amount has reached tens of millions.

Like Bitcoin, the 12-hour settlement has a greater impact than the 24-hour settlement. The amount of Ethereum liquidation in the past 12 hours has exceeded 21 million U.S. dollars. In a 24-hour period, a total of 38 million US dollars of liquidation is in progress.

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Long traders once again suffered most of the losses. As the price of ETH fell in sync with the price of Bitcoin, these long traders saw their positions were closed and suffered huge losses. In addition, Binance is also the exchange that records most of the clearing for this.

LUNA traders also felt some pressure, having cleared more than $2 million in the past 24 hours. If the market continues its current trend, traders may only see the beginning of an extended liquidation period.

Featured image from Time.com, chart from TradingView.com

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