[2024-03-27] $20 Million in Bitcoin Long Positions Liquidated ...

[chmod755]

$20 Million in Bitcoin Long Positions Liquidated as Price Tumbles From Intraday High

The price of bitcoin saw a significant fluctuation after remaining fairly consolidated over the past two days. After bulls managed to see bitcoin’s price rise to $71,754, the value dropped to a low of $68,557 per unit shortly after reaching the daily high.

Liquidations Rise Following Bitcoin Price Drop

Over the past 48 hours, bitcoin (BTC) has been in a consolidated pattern without much fluctuation. On Wednesday, March 27, 2024, that changed when the price spiked at around 9:15 a.m. Eastern Time and ran up to a high of $71,754 per coin. The bulls could neither hold the price in that range nor surpass the price height. 15 minutes later the price was in a freefall sliding below the $69,000 range to a low of $68,557.


Bitcoin chart by Tradingview
The price took a 2.5% hit during that hour, as it dropped from the $71,754 intraday high. Presently, BTC’s market capitalization is around $1.37 trillion and the leading crypto asset witnessed $33.28 billion in global trade volume on Wednesday. The price drop managed to liquidate $20.7 million in bitcoin (BTC) long positions and $13.03 million in ETH long positions were wiped out as well.

One-hour figures show across the entire crypto economy, $55.44 million in long positions were liquidated. At the same time, short positions caught in the rebound saw $8.31 million wiped out. Bitcoin is down 6% lower than its all-time price high recorded on March 14, 2024, or roughly 13 days ago. Moreover, there are approximately 24 days left until the upcoming Bitcoin block reward halving event.

Source: https://news.bitcoin.com/20-million-in-bitcoin-long-positions-liquidated-as-price-tumbles-from-intraday-high/

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[Oshosondy]

This is not something that is new. If the price is very volatile, some people that used high leverage will lose their coins. If it is about today's volatility, it is clearly predicted as bitcoin moved from around $70000 to almost $72000 in less than 30 minutes that the market will likely be bearish in the coming hour and it happened as bitcoin fall from $71890 to a price below $69000.

This is not new at all and it always let us know that we should use low leverage and not to be greedy in trading.

[OgNasty]

This is not new at all and it always let us know that we should use low leverage and nit to be greedy in trading.

I would take it a step further and say that you should use no leverage at all.  It's obvious that these leveraged traders are how exchanges make a ton of their money these days.  I wouldn't even be surprised if they all had some back channel discussions about leverage and how to work together to clear it out on days like today when both longs and shorts get destroyed.  I wouldn't even be mad at them.  They have the data and aren't breaking any rules (that I know of) to simply trade the price up and down together to liquidate their users.  It's probably doing the rest of us a service, as people typically don't want to hold an asset for a decade and get outperformed in a day by some wahoo with 1000x leverage who went long at the right moment.

[cr1776]

This is not new at all and it always let us know that we should use low leverage and nit to be greedy in trading.

I would take it a step further and say that you should use no leverage at all.  It's obvious that these leveraged traders are how exchanges make a ton of their money these days.  I wouldn't even be surprised if they all had some back channel discussions about leverage and how to work together to clear it out on days like today when both longs and shorts get destroyed.  I wouldn't even be mad at them.  They have the data and aren't breaking any rules (that I know of) to simply trade the price up and down together to liquidate their users.  It's probably doing the rest of us a service, as people typically don't want to hold an asset for a decade and get outperformed in a day by some wahoo with 1000x leverage who went long at the right moment.

Yes, the market can be irrational or can be manipulated longer than you can stay liquid if you are leveraged.  It just seems crazy to be using leverage right now unless you have a huge bankroll behind you.  Talk about making things more complicated than necessary.