The cryptocurrency market kicked off the week with a bang as massive liquidations hit investors who had bet against the rise of digital assets. Coinglass, an on-chain data analysis tool, reported that traders faced a staggering $364 million in liquidations on platforms like Binance, Bybit, OKX, and Huobi. A significant portion of these liquidations came from short sellers of Bitcoin (BTC/USD).
As Bitcoin continued to advance against the shorts, analysts were left wondering about the next critical resistance levels. The cryptocurrency market witnessed $158 million of Bitcoin short positions and $44 million of Ethereum (ETH/USD) short positions being wiped out. The largest single liquidation order occurred on Binance, where an ETH-USDT position valued at $10.38 million was liquidated. In total, over $270 million worth of cryptocurrency shorts were liquidated in the last 24 hours.
Crypto Rover, a cryptocurrency analyst, issued a warning based on CoinGlass data that Bitcoin short positions over a billion dollars could face liquidation if Bitcoin reaches $52,200. Meanwhile, Ethereum also saw a surge in its price, hitting $3,273—an apex not seen since April of the previous year and a stark contrast to its record high in November 2021.
The Bitcoin Fear and Greed Index, a measure of market sentiment for cryptocurrencies, hit a one-year high of 79 on the scale. This level hasn’t been observed since Bitcoin reached its all-time high price near $69,000 in November 2021.
At the time of writing, Bitcoin was trading at $56,320 per token, up 10% in the last 24 hours, according to data from Benzinga Pro. The cryptocurrency market continues to be volatile, with investors closely watching for any further developments that could impact prices.
Overall, the recent liquidations and price movements in the cryptocurrency market highlight the ongoing volatility and unpredictability of digital assets. Investors need to stay informed and cautious when trading in this space to navigate the ups and downs effectively.
