Following the launch of the highly hyped XRP ETF, Bitcoin has since been under intense market pressure pulling its price far below the crucial $100,000 level.
Amid this declining momentum, Bitcoin has experienced a brutal wipeout in its derivatives market, according to data provided by CoinGlass.
Bitcoin’s derivatives activity during the last 24 hour period has seen a total of over $310 million positions liquidated with a massive $268.07 million suffered by long traders.
While traders betting for the asset’s drop have only catered for $43.75 million during the period, the imbalance between the Bitcoin long and short liquidations over the last day stands at 512.73%.
While this shows heightened optimism among traders who have been betting heavily on a rebound that never came, it highlights how one-sided the bullish positioning had become right before the drop.
Bitcoin retests $94,000
While Bitcoin has been hovering above the crucial $100,000 level right before the sudden crash on Thursday, the majority of traders had leaned aggressively long, with high expectations of a further surge above the $100,000 level.
However, Bitcoin has extended the Thursday decline till this moment and has briefly touched the $94,000 level earlier today. Thus, this has caused the leveraged positions to become targets for forced liquidations, which has further fueled the downward pressure in its price.
While the negative trend has continued to spark fear among investors, market analysts have warned that Bitcoin could be on track to retest the $83,000 support zone if selling pressure persists.
Despite these severe price corrections, institutional investors like Strategy have stayed resilient and have continued to stack up on the asset in large portions, fueling hope for a positive reversal soon.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team