Crypto Currency News
Bitcoin
$62,614.56
-1200.23
Ethereum
$2,433.65
-55.04
Litecoin
$65.18
-2.68
DigitalCash
$24.03
-0.42
Monero
$145.65
-2.63
Nxt
$0.00
-0
Ethereum Classic
$18.75
-0.31
Dogecoin
$0.11
-0.01

Market Volatility Liquidates More Than $600M in Bitcoin Positions

Key takeaways

  • Bitcoin took a 5% nosedive within minutes to hit a low of $56,200.
  • The downswing generated massive losses across the board.
  • While some believe the move was part of a stop-loss hunt, technicals suggest a steeper decline.

Share this article

Volatility is rampant in the cryptocurrency market, wiping many overleveraged Bitcoin traders.

Bitcoin Wipes Out Overleveraged Traders

Bitcoin staged a 9,500-point turnaround in the past six days, gaining nearly 19% in market value.

According to Willy Woo, the impressive upswing seemed quiet as it lacked any significant liquidations. Such market behavior was odd since speculators do not usually profit “without being a little bit rect.”

“This is like walking into a forest and noticing the birds just stopped tweeting,” said Woo.

Future Long Liquidations by Glassnode

Market makers seem to have heard Woo’s wise words as Bitcoin took a sudden 5.20% nosedive after peaking at a high of $59,920. Data from Bybt shows that $663,007,804 worth of leveraged positions were liquidated over the past four hours.

The largest single liquidation order happened on the Seychelles-based cryptocurrency exchange Huobi, at a value of $14,680,000.

Despite the massive losses incurred within such a short period, independent researcher and investor PlanB maintains that the recent downswing was part of a “stop-loss hunt” needed for Bitcoin to now march towards $60,000 or higher.

Beautiful stop loss hunting.. again. Now that all leveraged longs are liquidated, we finally have room for breaking $60K in April. pic.twitter.com/PgSVXUSAuA

— PlanB (@100trillionUSD) March 31, 2021

Technicals Highlight Further Losses Incoming

From a technical perspective, Bitcoin looks bound for further losses.

The Tom DeMark (TD) Sequential indicator presented a sell signal on the 12-hour chart. The bearish formation developed as a green nine candlestick, which is indicative of a one to four 12-hour candlestick correction.

A further spike in selling pressure could see Bitcoin drop towards the 38.2% Fibonacci retracement level at $54,600 before the uptrend resumes.

Bitcoin US dollar price chartBTC/USD on TradingView

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

If this were to happen, Bitcoin would likely advance towards the recent all-time high of nearly $62,000 or higher.

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

For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.

https://www.youtube.com/watch?v=+lastest

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website . Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to update any outdated, incomplete, or inaccurate information.

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

See full terms and conditions.

Comments are closed.