The liquidation has rocked the space as bitcoin’s price fluctuated between red and green last week. With prices plunging for much of last week, the liquidation was heavily skewed towards long traders. That trend has now changed, as the liquidation of short traders has increased over the past week as it climbed back above $20,000.
Increase in short liquidation
After the weekend, the price of Bitcoin was much better than usual.This has been Turn the liquidation trend to bear traders. As the price of the digital asset has fallen, such positions have increased, leading some to believe it will continue. However, the cryptocurrency’s price appears to have found its footing, surpassing $17,000 and rebounding from there.
Related reading | Bitcoin Rebounds Before 2017 Peak, Has It Bottomed?
As of early Monday morning, the price of Bitcoin was stuck at around $20,000. At the same time, liquidations in the market remain high. Over $250 million has been liquidated on the market in the past 24 hours. At the same time, about 80,000 traders lost their positions, most of them were short traders, accounting for 63.56%.
Liquidations pass $260 million | Source: Coinglass
Some $100 million worth of bitcoins were liquidated during the same period, reaching 4,800 bitcoins. Meanwhile, Ethereum liquidations also increased by $82.47 million.
Altcoins such as SOL, DOGE, and GMT also felt the heat, with a large number of trades returning to clearing. The OKEX cryptocurrency exchange had the most liquidations in the past 24 hours at $96.25 million, with Binance in second place with $76.08 million.
Bitcoin price stays green
Bitcoin closed in the red last week after finally ending its nine-week red streak last week. This close brought a lot of negatives, pushing the price of the digital asset to a yearly low. However, the storm has begun to pass as prices recover.
Related reading | Mike McGlone says $20,000 is Bitcoin’s new $5,000, but is he right?
Buying increased over the weekend as the price of the cryptocurrency fell to the $17,000 level. This provided a much-needed rebound as support began to form. This is followed by a gain of $3,000 over the next two days, bringing the value of the digital asset closer to $21,000 again.
BTC trending in the mid-$20,000s | Source: BTCUSD on TradingView.com
But even as the bulls struggled to control the market, their efforts were met with a lot of opposition. Significantly at $21,000 where resistance is now the greatest. A break above this could bring the digital asset to $25,000 by the end of the week. Therefore opposed.
On the flip side is the first support level for the digital asset, which has now formed at $20,150. However, with investor selling still so strong, it is questionable whether Bitcoin can hold at these prices for long.
Featured image from Channels Television, chart from TradingView.com
follow Best Owie on Twitter Get market insights, updates and the occasional interesting tweet…