Despite surging prices, the crypto market may be poised for another bear storm going by futures market short liquidations data which is at a 15-month-high, as pointed out by a CryptoQuant on-chain analyst.
Short Liquidations on the highest level in 15 months— CryptoQuant.com (@cryptoquant_com) October 26, 2022
Writing in a QuickTake on the crypto market intelligence platform, J.A. Maartunn stated that the latest liquidations data suggests that bulls have their work cut out for them if the latest crypto rally is to be sustained.
He noted that around the opening time of U.S. stock markets, crypto short positions started to roll over. In total, about $320 million worth of short liquidations have been recorded, making the day an important trading day.
Given this reason, he added that it is very important that bulls have enough strength to maintain the price of Bitcoin (BTC) above $20,000 and turn the price level into support. This is especially as the monthly close is near.
"The main question for now: Will bulls have enough strength to keep prices above the $20000-price level and turning it in support? It will be very important, given the monthly close will be in a few days," the analyst said.
Crypto market rally still yet to abate
While the analyst expects a bear storm if the current rally is not sustained, prices in the crypto market have continued to rise. The market has once again reached a capitalization of over $1 trillion.
Along with BTC, Ether (ETH) has also been on a rise and contributed to the massive short liquidations. ETH surged massively to an intraday high of $1,512, shaking out over $105 million worth of short positions in its wake as U.Today reported earlier.