Bitcoin’s Break Above $20,000 Sees Market Liquidations Cross $1 Billion
27 October 2022 - 12:30AM
NEWSBTC
Tuesday has proven to be a good day for bitcoin and the crypto
market in its entirety as gains have been the order of the day.
Bitcoin has finally been able to clear the $20,000 territory even
when indicators pointed towards the more sluggish movement for the
digital asset. As expected, there have been ripple events from the
gains in the market. Liquidations are now the order of the day and
short traders are getting the ‘short’ end of the stick. Crypto
Liquidations Cross $1 Billion The crypto market has now recorded
its worse liquidation trend so far in 2022. Bitcoin’s recovery
above $20,000 was swift and the liquidations were just as fast. The
result of this is more than $1 billion being liquidated across the
crypto market in the last 24 hours. Given the recovery, short
traders have suffered the worst of it. Data from Coinglass shows
that over 87% of all liquidations recorded in the past day have
been from short traders. This means that short traders have lost
more than $700 million in a single day. Related Reading: Total LUNC
Burned Crosses 24 Billion, But Is It Enough? Amid this, FTX
exchange recorded the largest liquidation event in history with
more than $700 million liquidated on the crypto exchange. This puts
the majority of the market liquidations on FTX (74.7%) with all
other exchanges making up about 25% of the remaining figure.
24-hour liquidations cross $1.1 billion | Source: Coinglass
Approximately 156,000 traders were caught in the crossfire of this
bloody trading day. The largest single liquidation was recorded on
the Okex – ETH-USDT-SWAP pair for a total of $3.05 million. Total
market liquidation values now sit at $1.12 billion at the time of
this writing. Bitcoin Gearing Up For More Bitcoin has landed in the
mid-$20,000s after the current rally but the digital asset does not
seem to be done yet. The recovery put it firmly above its 50-day
moving average, which cements its short-term bull trend.
Additionally, the correlation with the stock market remains high
and bitcoin is bound to follow the performance of its largest
counterpart. If the current positive sentiment across the financial
market continues, then it is possible that BTC would test the
$21,000 resistance before the close of the trading day on
Wednesday. BTC price at $20,600 | Source: BTCUSD on TradingView.com
High inflation rates across the world are also triggering
investors’ move to bitcoin. Forecasts have put countries around the
world at even higher inflation rates going into the end of the
year, which could paint a bull picture for cryptocurrencies going
forward. Related Reading: Crypto Market Drops To Extreme Fear As
Bitcoin Struggles To Hold $19,000 BTC is currently trading at
$20,600 at the time of this writing. It is up 6.98% in the last 24
hours and has a current market cap of 396 billion. It has also seen
$61.7 billion in trading volume, a 136% increase in the last day.
Featured image from ITPro Today, chart from TradingView.com Follow
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