š #Bitcoin Blasts Past $100,000 ā Market Celebrates, But Nearly $1 Billion Liquidated
$BTC finally broke the psychologically significant $100,000 level on May 8, the first time since March. While many celebrated the milestone, a brutal wave of liquidations swept across the market, catching thousands of traders off guard.
š The Numbers Speak (Past 24 Hours):
* Over 190,000 trading positions liquidated.
* Total #liquidation volume reached nearly $970 million.
* A staggering $836 million of this total came from short positions that were squeezed by the price surge.
* This marks the largest single-day liquidation event for short sellers since 2021.
š„ Open Interest Hits Record Highs:
* Open Interest for Bitcoin futures has soared to a new all-time high of $67.4 billion.
* Historically, exceeding the $65 billion mark has often preceded a market correction ā the risk of a similar pullback remains.
ā ļø Outlook: Beware of Overheating:
* Bitcoin's current rally appears heavily driven by market emotion.
* With the market potentially overheated and a large build-up of long positions, conditions are ripe for a sharp correction designed to "shake out" leveraged traders.
* If the #price drops below $98,000, the volume of potential long liquidations could exceed $3.45 billion.
š Context: Fundamentals vs. Technicals:
* Underlying support for BTC's growth comes from fundamental factors like a weaker U.S. dollar, sustained inflows into BTC ETFs, and easing regulatory pressure.
* However, from a technical perspective, the market shows clear signs of being overextended, making a rapid price retracement a distinct possibility.
