Bitcoin

Bitcoin Shakeout Drives $190 Million In Losses For Over 81,000 Traders

Bitcoin has seen a pullback but not to the extent that bears have been expecting. Nevertheless, as a result of this, a lot of traders have incurred massive losses due to Bitcoin staging another unexpected recovery. The loss volumes have quickly risen to $190 million in one day as uncertainty remains the order of the day.

Crypto Liquidations Reach $190 Million

According to data from Coinglass, the 24-hour crypto liquidation volumes quickly rose above $190 million as Bitcoin completed a shakeout. This began with the price pullback to the $43,600 territory. And then a rapid rise back toward $44,000 completed the move.

Following this, traders on both sides quickly found themselves holding loss positions, and the liquidations pilled up. In total, over 81,000 traders were caught in the red, leading to more than $190 million in losses. Interestingly, the majority of these were from long trades who were betting on the price to continue to rise.

Bitcoin crypto liquidation

Source: Coinglass

Coinglass puts 73.74% of the total liquidations in the past day to be from long traders, meaning that around 45,000 traders were long this time around. The single largest liquidation event was recorded on the OKX crypto exchange across the ETH-USDT-SWAP pair which was valued at $2.12 million at the time of the liquidation.

There was also a new entrant into the top 3 in terms of liquidation volumes. Naturally, Bitcoin and Ethereum led the pack with liquidation volumes of $47.12 million and $29.16 million. However, ORDI came in third position with $21.64 million in liquidations in 24 hours.

Long Traders In Trouble As Bitcoin Tanks

Long traders have continued to suffer the brunt of the liquidations in the last day, and the tides are still yet to turn against the bears. As Bitcoin’s price has briefly plunged below $43,000 and recovered back up toward $43,400 once more, the long liquidations are still piling up.

At the time of this writing, short liquidations made up 91.05% of the approximately $47.83 million in liquidations that have been recorded in the last four hours. This 4-hour liquidation trend is also being led by the same top three including Bitcoin, Ethereum, and ORDI, all of which have seen a lot of volatility in the last week. If Bitcoin’s recovery continues to show high volatility, these liquidation volumes will continue to rise.

The majority of the liquidations have taken place on both the Binance and OKX exchanges with $82.56 million and $60.51 million, respectively. ByBit exchange snags third position with $27.05 million in liquidations in the last day.

Bitcoin is currently struggling to maintain support above $43,000, which explains why there has been an uptick in the liquidation trend in the last few hours. However, bulls are still ahead and continue to dominate as sentiment remains firmly in greed.

Bitcoin price chart from Tradingview.com

BTC exhibits high volatility | Source: BTCUSD on Tradingview.com

Featured image from Coin Culture, chart from Tradingview.com

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