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Major cryptocurrency Bitcoin (BTC) saw something anomalous on its radar in the last few minutes when, according to CoinGlass data, short positions, i.e., bearish sellers, were liquidated for $9.46 million in just a few minutes.
Interestingly, however, during the same time period, the number of long liquidations, i.e., bullish buyers, amounted to only $1.1 million. Thus, we have an interesting situation where Bitcoin trading has created an 860% imbalance in liquidations - not in favor of bears.
Yuri Molchan
The reasons for such a discrepancy, of course, should be sought on the price chart of the main cryptocurrency.
Bitcoin (BTC): Price outlook
What happened is this - the price of Bitcoin literally jumped 2.1% in half an hour, which is huge for an asset currently valued at more than $1.3 trillion. But more importantly, the price of BTC has risen above $70,000 per coin, which is an important local psychological mark.
Of course, as a result of such a powerful not only technical, but also fundamental, move, bears' short positions could not withstand it and were liquidated in a cascade. The funny thing is that it probably also helped the price of Bitcoin to rise so high in such a short period of time.
Alex DovbnyaNow, the price of BTC has rolled back to levels below $70,000 per coin, and according to open interest data, no one is in a hurry to open new positions.
Alex Dovbnya
Vladislav Sopov
Dan Burgin