Market volatility is liquidating more than $ 600 million in Bitcoin positions

The central theses

  • Bitcoin plunged 5% in minutes to hit a low of $ 56,200.
  • The downturn caused massive losses across the board.
  • While some believe the move was part of a stop-loss hunt, the technical data suggests a steeper decline.

Share this article

The volatility in the cryptocurrency market is widespread and is wiping out many overfunded Bitcoin traders.

Bitcoin wipes out overfunded traders

Bitcoin has completed a turnaround of 9,500 points in the last six days and achieved a market value increase of almost 19%.

According to Willy Woo, the impressive upswing appeared to be calm as there were no significant liquidations. Such market behavior was strange, as speculators typically don’t “profit without being a little right”.

“It’s like walking into a forest and realizing that the birds just stopped tweeting,” said Woo.

Future long liquidations of Glassnode

Market makers seem to have heard Woo’s wise words when Bitcoin suddenly plunged 5.20% from a high of $ 59,920. Bybt data shows that leveraged positions worth $ 663,007,804 have been liquidated in the past four hours.

The largest single liquidation order was placed on the Seychelles-based cryptocurrency exchange Huobi, valued at USD 14,680,000.

Despite the massive losses incurred in such a short period of time, independent researcher and investor PlanB believes the recent downturn was part of a “stop-loss hunt” that Bitcoin has needed so far March towards $ 60,000 or higher.

Nice stop-loss chase .. again. Now that all leveraged longs have been liquidated, we finally have room to crack $ 60,000 in April.

– PlanB (@ $ 100 trillion) March 31, 2021

Technical data highlights other incoming losses

From a technical point of view, Bitcoin is facing further losses.

The sequential indicator Tom DeMark (TD) showed a sell-signal on the 12-hour chart. The bearish formation evolved as a green nine-candle holder, indicating a one to four 12-hour candle correction.

Another spike in selling pressure could cause Bitcoin to drop to the 38.2% Fibonacci retracement level at $ 54,600 before resuming the uptrend.

Bitcoin US dollar price chartBTC / USD on TradingView

Given the strength of the 78.6% Fibonacci retracement level at $ 59,300, just a 12 hour candlestick near this resistance barrier could invalidate the bearish outlook.

If so, Bitcoin would likely be heading for its recent all-time high of nearly $ 62,000 or more higher.

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.

OKCoin logo

OKCoin banner

Share this article

The information on or through this website is obtained from independent sources which we believe are correct and reliable. However, Decentral Media, Inc. does not warrant or guarantee the currency, completeness, or accuracy of any information on or through this website. Decentral Media, Inc. is not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website can be changed without prior notice. Some or all of the information on this website may be out of date, incomplete or inaccurate. We may, but are not required to, update outdated, incomplete, or inaccurate information.

You should never make an investment decision for an ICO, IEO or any other investment based on the information on this website and you should never interpret or otherwise rely on any information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional when seeking investment advice on an ICO, IEO or any other investment. We do not accept any compensation for the analysis or reporting of ICO, IEO, cryptocurrency, currency, token sales, securities or goods.

See full terms and conditions.

Despite the uncertainty in the US, Ripple is finding traction in the east

As the SEC vs. Ripple case continues to resolve, the dispersed ledger startup is taking significant steps to grow its business across Southeast Asia and help XRP regain positive momentum. Ripple grows …

Jay Clayton joins the Bitcoin-rich wealth management firm

Former SEC chairman Jay Clayton serves on the advisory board of One River Digital Asset Management, a digital asset investment firm. Clayton Now Advisor at Crypto Company Jay Clayton, who …

VeChain Technicals magic problems for the cops

A crucial level of resistance has rejected VeChain’s uptrend. Now VET seems poised for further losses as several sell signals emerge. VeChain flashes multiple sell signals VeChain posted massive gains …

What are non-fungible tokens (NFTs)?

Tokenization works well for commodities like fiat currencies, gold, and physical land. By displaying a fungible asset on the blockchain, goods can be traded around the clock via limitless and smooth transactions. Fungible goods are …

Comments are closed.