bitcoin has seen a pullback, but not to the extent that bears expected. However, as a result of this, many traders have incurred massive losses as bitcoin experienced another unexpected rally. Loss volumes have rapidly increased to $190 million in one day as uncertainty remains the order of the day.
crypto Liquidations Reach $190 Million
According data According to Coinglass, 24-hour cryptocurrency settlement volumes quickly rose above $190 million as bitcoin completed a restructuring. This began with the price retreating to the $43,600 territory. And then a quick rise towards $44,000 completed the move.
After this, traders on both sides quickly found themselves with losing positions and liquidations piled up. In total, more than 81,000 traders were trapped in the red, causing losses of more than $190 million. Interestingly, most of them came from long trades that were betting on the price continuing to rise.
<img decoding="async" class="alignnone size-medium wp-image-564349 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/Bitcoin-Shakeup-Causes-190-Million-in-Losses-for-More-Than.png" alt="bitcoin Cryptocurrency Settlement” width=”460″ height=”272″ srcset=”https://www.newsbtc.com/wp-content/uploads/2023/12/Screenshot-2023-12-07-at-10.53.47.png?w=3034 3034w, https://technicalterrence.com/wp-content/uploads/2023/12/Bitcoin-Shakeup-Causes-190-Million-in-Losses-for-More-Than.png 460w, https://www.newsbtc.com/wp-content/uploads/2023/12/Screenshot-2023-12-07-at-10.53.47.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/12/Screenshot-2023-12-07-at-10.53.47.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2023/12/Screenshot-2023-12-07-at-10.53.47.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2023/12/Screenshot-2023-12-07-at-10.53.47.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2023/12/Screenshot-2023-12-07-at-10.53.47.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/12/Screenshot-2023-12-07-at-10.53.47.png?w=1140 1140w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
Source: Coinglass
Coinglass estimates that 73.74% of the total liquidations of the last day came from long traders, meaning that around 45,000 traders were long this time. The largest liquidation event was recorded on the OKX crypto exchange in the eth-USDT-SWAP pair, which was valued at $2.12 million at the time of liquidation.
There was also a new entrant in the top 3 in terms of settlement volumes. Naturally, bitcoin and ethereum led the pack with settlement volumes of $47.12 million and $29.16 million. However, ORDI came in third position with $21.64 million in settlements in 24 hours.
Long-term traders in trouble as bitcoin tanks
Long traders have continued to bear the brunt of the sell-offs in the past day, and the tide has yet to turn against the bears. As bitcoin price briefly fell below $43,000 and recovered back towards $43,400, long liquidations are still piling up.
At the time of writing, short liquidations accounted for 91.05% of the approximately $47.83 million in liquidations that have been recorded in the last four hours. This 4-hour sell-off trend is also led by the same top three, including bitcoin, ethereum, and ORDI, all of which have seen a lot of volatility in the last week. If bitcoin's recovery continues to show high volatility, these liquidation volumes will continue to increase.
The majority of liquidations have occurred on the Binance and OKX exchanges with $82.56 million and $60.51 million, respectively. The ByBit exchange is in third position with $27.05 million in liquidations in the last day.
bitcoin is currently struggling to hold support above $43,000, which explains why there has been an uptick in the sell-off trend in recent hours. However, the bulls are still ahead and still dominant as sentiment remains firmly in greed.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/Bitcoin-Shakeup-Causes-190-Million-in-Losses-for-More-Than" alt="Tradingview.com bitcoin Price Chart” width=”2650″ height=”1530″/>
btc exhibits high volatility | Source: BTCUSD on Tradingview.com
Featured image from Coin Culture, chart from Tradingview.com
