The cryptocurrency market experienced a significant liquidation event totaling $118 million within the last 24 hours, predominantly affecting bearish traders. Bitcoin and Ethereum were at the forefront of this surge, with Bitcoin accounting for over $68 million in liquidations, as indicated by the latest liquidation heatmap.
Approximately 88% of these liquidations were attributed to short positions, highlighting a major shakeout of bearish sentiment and suggesting that short sellers are under considerable pressure. The exchanges with the highest liquidation rates, particularly in short positions, were Binance and HTX. Notably, HTX reported a staggering 98% liquidation rate for short positions, underscoring the prevailing bullish momentum in the market. This trend suggests that many bears were caught off guard as Bitcoin’s price reclaimed levels above $64,000.
Recent chart analysis of Bitcoin reveals that it has successfully breached a significant resistance level at $62,000 and is approaching the critical psychological barrier of $64,500. If Bitcoin can sustain its upward trajectory, the next target is set around $68,000.
However, traders are advised to remain vigilant, as a pullback may occur if the $64,500 resistance is not decisively surpassed, potentially retesting support at $61,000. Additional data indicates a sharp decline in futures open interest, particularly on Binance, where nearly 4,000 BTC in open interest has been wiped out.
This situation illustrates the pressure on bearish traders and the liquidation of over-leveraged positions. The liquidation heatmap further reveals that this event is not isolated, with other cryptocurrencies like SUI and SOL also experiencing similar liquidations.
The current liquidation sweep reflects a healthy correction of short positions, raising the potential for an extended bullish rally. Investors should closely monitor key resistance levels, particularly the $64,500 range for Bitcoin, as a clear break could pave the way for more substantial gains in the cryptocurrency market, with Bitcoin leading the charge.
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