BTC’s price surged, activating multiple short position liquidations, especially for high-leverage traders.
Ethereum's price showed more volatility, while Bitcoin displayed uniform upward growth.
High-leverage trading contributed to the repeated liquidations.
Between June 21 and July 3, Bitcoin's price movements revealed notable volatility, marked by multiple short positions and liquidations. According to Lookonchain post on X, a gambler called Qwatio, using high leverage, repeatedly met liquidation as BTC's price saw an uptick during this period. This trend has proved the challenges traders face when employing aggressive strategies in volatile markets.
BTC Key Price Movements and Short Positions
Bitcoin’s price began around $108,000 on June 21. As the price rose, the gambler opened short positions, marked with yellow circles on the chart. The initial liquidation took place on June 22 when the price climbed sharply. The price increase led to the forced exit of positions, highlighting the risk associated with shorting in a volatile market.
Source: Lookonchain (X)
As Bitcoin’s price continued upward, additional liquidations occurred. On June 24, a trader was liquidated seven times after the price rose. This suggests that short positions, taken at higher leverage, were repeatedly wiped out by rising prices.
Another liquidation followed on June 25, and as the price touched $108,200 on June 28, more traders experienced liquidations. These events underscore the high stakes in a market with strong upward momentum.
Bitcoin and Ethereum Market Trend
Tracking the ongoing market movement between BTC and ETH at the time of press, a comparative chart from CoinMarketCap indicates that Bitcoin's price is $109,441.51, reflecting a 1.33% increase over the past week.
Source: CoinMarketCap
The market capitalization stands at $2.17 trillion, and the 24-hour trading volume has risen by 20.15% to $56.29 billion. In recent times, BTC has recorded positive changes, where it has been facing an upward trend in prices since June 30 up to July 3. Comparatively, Ethereum has been affected more by volatility.
Although the growth of Bitcoin continues to be significant, the price of Ethereum has declined and increased on July 2 and 3, clearly. The present tendency implies the prevailing success of Bitcoin in the market as it performs better than Ethereum both in price stability and development.
The Impact of High Leverage
The successive shorting and short left openings indicate that large margins contributed to a major part of these occurrences in the market. The price in BTC grew up and new short positions were constantly opened by traders.
When the market pressure was going up, these positions had to be closed at a loss hence making traders using leverage at greater danger. This wave of liquidations and short positions that have opened sometime between June 21 and July 3 is there to provide a vivid example of the dangers of trading with high leverage.
The result is repeated failures of short positions as Bitcoin is so volatile, particularly for traders who trade with major leverage. The information clearly demonstrates that the increased prices created a significant amount of pressure on short positions, and when the traders resorted to liquidation events, very large losses were realized.
