By Shelly Melancon (Switzerland)
It is not time for smiles in the crypto market today as BItcoin fell, pulling traders down to huge losses. With nearly $1 billion liquidated within three hours, traders have suffered one of the biggest losses of all time in the crypto industry today. This has again highlighted the sharp impact of cryptocurrency volatility.
Analysts have predicted a correction in Bitcoin’s price following weeks of strong bullish moves that saw new price levels; Bitcoin has consistently broken previous resistance and achieved higher highs on the daily charts. The world’s first and biggest cryptocurrency touched $69,100 for the first time ever to set a new all-time high record.
Bitcoin Liquidates Traders
But today, Bitcoin fell to its lowest price in one week when it crashed to $63,000 within three hours. The coin quickly lost momentum and pulled one bearish candle after another to close below its one-week opening price. Bullish traders were liquidated and lost a huge amount of money to the crash. An estimated $700 million was lost across the market today as traders seek to understand the reason for a sharp crash in Bitcoin’s price. The $6,000 loss in price corresponds to an 8% loss in 24 hours; a massive drop considering the Bitcoin market cap.
Also read:Three exchanges, Binance, OKEx, and FTX had the highest liquidation, pooling a collective 85%. But it was on BitMEX that the most pain was felt by a single trader who lost $10 million. The trader had gone long but was quickly liquidated within three hours. The four BTC pairs that suffered the worst liquidation are ADA, XRP, SOL, and DOT. Bullish traders on all four pairs were responsible for collective liquidity of $100 million; representing 14.3% of the entire market liquidation.
Although Bitcoin has recovered to above $65,000 as of press tie, the losses must still be substantial. The massive drop took out thousands of traders who went long or short on the coin’s pairs.
The information was published by Coinglass today. In the report, Coinglass noted that 174, 000 traders had experienced a loss with 77% of them opening long positions. The remaining 23% opened short positions but had their position wiped out.
But it wasn’t limited to Bitcoin. Ethereum traders also experienced a liquidation of $100 million when Ethereum dipped to below $4,500. The second-largest token, always mimicking Bitcoin, had a much smaller loss margin within the same timeframe. The other big coins following BTC and ETH; DOT, ADA, XRP, and SOL also experienced some dip in value.
Bitcoin Price Movement
Bitcoin currently trades at $64,914.99 as of writing, having dropped by 3.24%. On the charts (TradingView), Bitcoin formed an inverted hanging man on the weekly chart and looks to be gathering momentum for a bullish move. The bulls have pushed the closing precise higher and despite the bearish candle on the 4 hour chart, it looks like a small bullish trend may come up.
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