Bitcoin fell by $1,000 this morning in a sudden drop, along with the rest of the crypto market, resulting in $7 million in liquidations. „Liquidations, “ occur when leveraged positions are automatically closed by exchanges / brokerage as„security mechanism & # 8220;. Futures and margin traders – who borrow capital from the exchanges to place larger bets & # 8211; put a small margin before placing a trade.
The move followed a troubled weekend market that saw Bitcoin fluctuate between the $33,000 and $35,500 price zones. This morning, however, Bitcoin saw a clear rejection in the $ 35,500 zone, dropping over $ 1,000 in just 30 minutes.
As the lower chart shows, buyers have entered at the $34,000 mark, causing the price drop to temporarily pause. Still, Bitcoin is currently trading below its 34-period moving average, a tool used by traders to determine market trends based on historical prices, suggesting further downside moves in the next few hours.
The downward movement caused other cryptocurrencies to fall in addition to Bitcoin, costing traders over $ 7 million. According to the data analysis tool Bybt, over 89% of all futures traders were in „long“ positions and lost a total of over $7,69 million.
$3,6 Million of the long liquidations happened on the futures platform Bybit. OKEx and Binance followed with $1.45 million and $1.28 million in liquidations, respectively. Bitcoin recorded the highest amount of liquidations at $4.2 million, followed by Ethereum at $2.5 million and XRP at $614,000.
11% of„ Short & # 8220; traders were also liquidated as $914,000 was lost (while short traders were betting on falling prices, they may have used higher leverage, which led to them also being liquidated as a result of volatility).
Text credit: cryptoslate