The cryptocurrency market is once again marked by extreme turbulence, with Bitcoin (BTC) at the center of attention. Recent data shows a massive wave of liquidations has swept through exchanges, erasing more than $195 million in Bitcoin trader positions in just the last 24 hours!
Based on the circulating screenshots, which display liquidation data from various timeframes, it is clear how brutal the price movements of Bitcoin have been for traders. In the last hour alone, over $6.22 million in positions have been liquidated, with the majority of losses incurred by traders taking long positions (buy).
A similar trend is observed in longer timeframes. In the last four hours, total liquidations reached $9.76 million, and in the last twelve hours, that figure soared to $137.49 million. However, the most astonishing is the data from the last 24 hours, where total liquidations hit $195.20 million!
Interestingly, although the majority of liquidations in the 1-hour, 4-hour, and 12-hour timeframes were dominated by long positions, in the last 24 hours, there has been a significant increase in short position liquidations (sell), reaching $53.44 million. This indicates sharp price volatility, forcing speculators on both sides of the market to capitulate.
Detailed data also reveals which exchanges have been most affected by this market "cleaning." Binance became the exchange with the largest liquidation, reaching $11.69 million for long positions and $2.5 million for short positions within a specific timeframe that is not specified in the screenshot. OKX and Bybit also recorded significant liquidation figures.
The Bitcoin price chart included in the image shows dramatic price fluctuations, with long red candles indicating sharp declines likely to trigger mass liquidations. On April 12 at 08:00, the price of Bitcoin was recorded at $85,237.8 (note that the date format may vary and this figure needs to be verified with more accurate data).
What Triggers This Wave of Liquidations?
The exact cause of this liquidation wave is still speculative. Some factors that may contribute include:
* Market Volatility: The cryptocurrency market is known for its high volatility. Sudden and significant price movements can quickly trigger margin calls and liquidations.
* Market Sentiment: Changes in market sentiment, whether due to positive or negative news, can lead to panic selling or buying.
* Whale Action: Large fund movements by whales (holders of significant amounts of cryptocurrency) can exert significant pressure on prices.
* Correction After Rally: After a significant price increase, a normal correction can occur, which can trigger liquidations for traders using high leverage.
Implications for Traders:
This wave of liquidations serves as a harsh reminder of the risks of cryptocurrency trading, especially when using leverage. Leverage allows traders to amplify potential gains but also magnifies potential losses. Strict risk management and a deep understanding of market volatility are essential to avoid becoming a victim of liquidation.
Market analysts advise traders to be cautious and conduct thorough research before taking positions, as well as considering the use of stop-loss orders to limit potential losses.
The cryptocurrency market continues to show its unpredictable dynamics. Market participants will continue to monitor Bitcoin price movements and the factors affecting them to anticipate the next steps.
Is it a Bullish or Bearish sign?