Over $650 Million Liquidated from Crypto Market Amid Bitcoin Rally
Bitcoin
BTC
$81,760
24h volatility:
2.4%
Market cap:
$1.61 T
Vol. 24h:
$90.00 B
reached a new all-time high, prompting bullish momentum across the crypto market, particularly for Ethereum #ETH, Dogecoin
DOGE
$0.29
24h volatility:
15.9%
Market cap:
$42.01 B
Vol. 24h:
$21.80 B
, and Solana
SOL
$215.9
24h volatility:
4.7%
Market cap:
$101.80 B
Vol. 24h:
$12.74 B
. A notable increase in cryptocurrency volatility led to over $655 million liquidated from the market.
Liquidation Data
Over 230,000 crypto traders were liquidated in the last 24 hours, primarily short positions. Bitcoin's leveraged market saw $121 million liquidated, with the largest single liquidation order on OKX exchange at approximately $15.56 million. Ethereum followed closely with over $90 million liquidated, while Dogecoin accounted for more than $68 million.
Future Outlook
The entry of Bitcoin into a price discovery phase may lead to increased volatility due to recent significant news events. Cash inflows into cryptocurrency investment products, especially US spot Bitcoin ETFs, have attracted new FOMO traders.
Nearly $1 billion will be liquidated if #Bitcoin $BTC drops to $77,250! pic.twitter.com/4E9fLJLrcE
— Ali (@ali_charts) November 11, 2024
Data indicates that a drop in Bitcoin price to around $77,253 could result in about $1 billion in long liquidations. The potential for Bitcoin to retrace below $80K before continuing its upward trend is significant. Over 60 percent of traders on Binance with open Bitcoin futures positions are currently short.
Technical Analysis
From a technical perspective, Bitcoin is positioned to experience substantial growth as the weekly Relative Strength Index (RSI) approaches 70 percent for the first time since April. A retracement below $80K may occur to test the previous all-time high of approximately $73.7K.
Investor Strategy
As the cryptocurrency market enters a volatile phase, forced liquidations are anticipated to rise. Unexpected FOMO traders may emerge amid increasing mainstream adoption driven by institutional investments.
As #bitcoin make successive new all-time highs, apply proper risk management. There will be many dips (and highs) in the future. Make sure you can handle them. Control your greed. Don't put all your eggs in one basket. Ape slowly. https://t.co/lSfLHbj7go
— CZ 🔶 BNB (@cz_binance) November 8, 2024
Changpeng Zhao (CZ), co-founder of Binance, advised investors to implement effective risk management strategies and recommended holding crypto assets through bull markets instead of frequent trading to optimize profits.