Data from Coinglass shows that in the past 24 hours, the cryptocurrency market recorded a large amount of contract liquidation, totaling up to 226 million USD. Among them, Long positions accounted for 128 million USD, while Short positions reached nearly 98.5 million USD. Specifically, Bitcoin and Ethereum – the two leading cryptocurrencies in the market – were also significantly affected with liquidation values of over 53 million USD for Bitcoin and over 62 million USD for Ethereum. This information reflects strong volatility and the cautious sentiment of traders in the cryptocurrency market recently.
Overview analysis of contract liquidation in the cryptocurrency market
Contract liquidation is a phenomenon that occurs when a trading position does not have enough margin to maintain due to contrary market price movements. In the past 24 hours, the total value of contract liquidation in the cryptocurrency market reached 226 million USD, showing strong volatility and high risk pressure on traders. A thorough analysis of Long and Short positions helps investors grasp the psychological trends as well as short-term price trends.
Specifically, Long positions were liquidated with a value of up to 128 million USD, reflecting the selling pressure as the prices of cryptocurrencies fell. In contrast, Short positions were liquidated close to 98.5 million USD, indicating that some traders were reversed when prices suddenly surged. This information supports the assessment of volatility and identifies important support and resistance levels in the near future.
The impact of contract liquidation on Bitcoin and Ethereum
Bitcoin and Ethereum are the two largest cryptocurrencies in the market, so the liquidation value of contracts on these two coins is also the most notable. In the past 24 hours, Bitcoin had contracts liquidated worth about 53 million USD, reflecting the strong volatility of this coin amid significant market fluctuations.
Ethereum is no exception when it recorded a liquidation of contracts worth over 62 million USD. This figure demonstrates the sensitivity of ETH to price fluctuations and the impact of technical and fundamental factors in the cryptocurrency market. Significant price fluctuations in both Bitcoin and Ethereum often lead to widespread effects on Altcoins and the overall market.
Reasons for the increase in contract liquidation in the cryptocurrency market
The sharp increase in the number of liquidated contracts in a short period arises from many factors, including significant price volatility due to news, policy changes, or macroeconomic developments. Pump and Dump events or FOMO and FUD effects also lead investors to be easily swept along by price fluctuations, resulting in the risk of liquidation.
At the same time, pressure from positions using high leverage further increases the likelihood of liquidation when the market experiences unexpected fluctuations. Risk management and reasonable asset allocation are vital factors to minimize losses during periods of strong market volatility.
The long-term impact of contract liquidation on the cryptocurrency market
Contract liquidation plays an important role in price adjustment and liquidity in the cryptocurrency market. When many positions are closed simultaneously, prices can react quickly, creating new support or resistance levels for traders to reference.
Moreover, the balance between Long and Short positions after liquidations helps consolidate the long-term market trend and facilitates investment strategies based on technical and fundamental analysis to be more effective.
Source: https://tintucbitcoin.com/24-gio-thanh-ly-hop-dong-mang-226-trieu-usd/
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