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$130 Million Worth of Bitcoin Shorts Liquidated as BTC Spikes Above $29,000

Thu, 03/30/2023 - 08:19
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Arman Shirinyan
Massive volume of orders liquidated from market after Bitcoin made new high
$130 Million Worth of Bitcoin Shorts Liquidated as BTC Spikes Above $29,000
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Bitcoin recently experienced a significant spike in liquidations, reaching approximately $130 million following a price surge above $29,000.

Liquidations on the cryptocurrency market occur when traders' positions are closed, usually as a result of margin calls or stop-loss orders being triggered. A high volume of liquidations might lead to increased volatility, as large numbers of positions are closed and assets are sold off. This can create a domino effect, causing further liquidations and exacerbating price movements.

BTC liquidations
Source: CoinGlass

At the time of writing, Bitcoin is trading at $28,613, having gained around 7% in value over the last 48 hours. Despite this increase, the digital asset has not yet reached its local high of $29,346 reached back on March 24. The market is closely monitoring Bitcoin's price performance, as breaking through the local high could potentially signal a more extended bullish run.

Interestingly, funding rates on centralized exchanges remain relatively low. This suggests that the current rally may not be fueled by leverage, which could be both a positive and negative factor for Bitcoin's price movement.

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On the one hand, a rally that is not driven by leveraged positions can be considered more stable, as it reduces the risk of a cascade of liquidations due to margin calls. In this scenario, the market may be able to sustain its growth without facing a sharp downturn caused by leveraged traders being forced to close their positions.

On the other hand, low funding rates might also imply that there is a lack of confidence among traders, with many choosing not to leverage their positions in anticipation of a potential price reversal. This could hinder Bitcoin's ability to maintain its upward momentum, as traders remain cautious and unwilling to take on additional risk.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.