Tag: Liquidation

Crypto Market Sees $650 Million in Liquidations as BTC and ETH Enter Overbought Zone

In short, the crypto market has experienced a steep increase in volatility over the past 24 hours, with total liquidations reaching $650 million. This has caused Bitcoin and Ethereum to reach overbought zone, signaling a potential market cooldown.

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Crypto Liquidations

Liquidations Spike Amid High Volatility

Coinglass provides data that shows the total liquidation have surged 70% in a day, with total amount of $650 million — $366 million in long position and $284 million in short positions. Bitcoin and Ethereum being face of crypto market, among other major cryptocurrencies are showing signs of an overbought market, which may bring forth a cooldown in their recent bull run.

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Bitcoin and Ethereum in Overbought Zone

Bitcoin recently reached all time high of $89,600 with it’s RSI hitting 75, a level that indicates it may be overbought. Ethereum also saw similar activity and reached it’s peak $3,241 before experiencing a gradual decline with it’s RSI standing at 74. This unusual and shocking activity suggests potential short-term volatility.

Market Sentiment and Speculation

After Bitcoin and Ethereum hit their all-time high, Experts are on the side of the bull-run’s sustainability. Cameron Winklevoss believes that this market cycle is being driven by institutional investments rather than retail. On the other hand, CryptoQuant CEO Ki Young Ju warns that the future crypto market may be bearish and overheated for 2025.

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Bitcoin, Ethereum Surge After Major Short Liquidations

Summary

Bitcoin and Ethereum are experiencing bullish momentum due to recent liquidation. Data provided by Coinglass states that over $138 million are in liquidation with $95 million coming from shorts position.

Ethereum Leads Liquidations and Gains

Ethereum showed exponentially good results at charts with $27.69 million in liquidation of which $23.84 million were from shorts position. This growth has also boosted ETH’s value by 3.1%, reaching $2,730. Ethereum’s trading value has also skyrocketed by 117% with grand total value of $17.4 billion as investors interest has been gathered. Notably, the largest single liquidation order was on Binance, worth $6.64 million in the ETH/USDT pair.

Bitcoin Follows Close Behind

Bitcoin saw $25 million in liquidations, with $21 million coming from shorts. This short squeeze helped BTC reach a four-month high of $69,460, though it corrected slightly and is now trading at $68,700. BTC’s daily trading volume spiked by 74%, climbing to $24 billion.

Broader Market Impact

The international crypto market has been on three-month high of $2.49 trillion. However analyst believe if this is to continue there’s a possibility of tides turning the other way, triggering sell-offs as traders and investors scramble to limit their potential loss. Conclusively, the surge of liquidation does shine a positive light on crypto space but further surge might cause potential problems.

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