1/ 🚨 Record liquidations in the crypto market: $1.57B in 24 hours -
#Bitcoin! The crypto market experienced its largest wave of liquidations since September 2021. Bitcoin fell below $97,000, causing massive liquidations in long positions. What does this mean for the market? 🧵👇
2/ What happened?
$1.39B in long positions liquidated compared to only $183M in short positions. The critical support level of $97,700 was briefly breached, triggering cascading liquidations due to leveraged positions.
This reflects excessive confidence in a possible advance of
$BTC towards $100K.
3/ Key data:
Liquidations concentrated near $97,700, a key level for leveraged longs. Shorts, in comparison, were minimal and with flat curves, indicating less aggressiveness in bearish positions.
4/ Liquidation curve analysis:
Before the drop, there were $91M in shorts liquidated, indicating failed attempts by traders who shorted the previous rally. The abrupt drop in longs to $97,000 could indicate a possible short-term recovery if selling pressure decreases.
5/ What’s next for Bitcoin?
The massive liquidation may have relieved the market of leveraged positions, opening the door to a possible technical rebound. However, $97,700 remains a key level to recover in order to resume bullish momentum.
6/ The record liquidations underscore the importance of managing risk in volatile markets.
💬 Do you think BTC will regain strength after this event, or will we see more corrections?
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