Liquidations have rocked the space as the price of bitcoin fluctuated between red and green over the past week. Since the price declined for most of the past week, the liquidations have been heavily favored by the long traders. This trend has now changed as the liquidations of smaller traders have been ramping up, recovering above $20,000 over the past week.
Short Liquidation Ramp Up
Coming out of the weekend, the price of bitcoin is doing much better than it was during the week. This has now turned the trend of liquidation towards small traders. Such a situation was exacerbated by the drop in the price of the digital asset, leading some to believe it would continue. However, the price of the cryptocurrency seems to have climbed above $17,000 and bounced back from there.
Related Reading | Bitcoin Rebounds Before Hitting 2017 Top, What’s Down?
As of the early hours of Monday, bitcoin price is resting in the mid-$20,000 range. At the same time, the volume of liquidations in the market remains large. Over $250 million has been liquidated in the market in the last 24 hours. At the same time, around 80,000 traders have lost their positions, most of whom have been short traders at 63.56%.
Liquidations pass $260 million | Source: Coinglass
About $100 million worth of bitcoins have been liquidated in the same time period, which is 4,800 BTC. While the liquidations of Ethereum have also increased with $82.47 million in liquidations in the same time period.
Altcoins such as SOL, DOGE and GMT are also feeling the heat, leading to a large amount of liquidations. The OKEX crypto exchange has seen the most liquidations in the last 24 hours with $96.25 million, with Binance second with $76.08 million.
Bitcoin price remains in the green
Bitcoin closed in the red last week after ending a nine-week red streak. This close came with a number of negative effects, causing the price of the digital asset to drop annually. However, with the recovery in prices, this storm has started to subside.
Related Reading | Mike McGlone Says $20,000 Is the New $5,000 for Bitcoin, But Is He Right?
The buying momentum was seen over the weekend since the cryptocurrency price dropped to the $17,000 level. This provided a much needed bounce point as support started to form. This was followed by gains of $3,000 over the next two days, bringing the value of the digital asset closer to $21,000 once again.
BTC trending in the mid-$20,000s | Source: BTCUSD on TradingView.com
But even though the bulls have struggled to capture the market, their efforts have met with much opposition. Importantly at $21,000 where there is now most resistance. Breaking this point could see the digital asset reach $25,000 before the end of the week. Hence the opposition.
On the other hand, the first support level for the digital asset is now formed at $20,150. However, the selling sentiment among investors is still so strong, it is doubtful that bitcoin will be able to hold on to such prices for very long.
Featured image from Channels Television, chart from TradingView.com
obey Best Ovi on Twitter For market info, updates and the occasional funny tweet…