Arman Shirinyan
Nearly $400M in liquidations hit the market as Bitcoin loses battle against bears
As we have mentioned multiple times in U.Today cryptocurrency market reports, despite positive signs we had previously seen, the majority of veteran market participants expected Bitcoin and other cryptocurrencies to dip further.
As CoinGlass suggests, the market posted a massive $358 million loss after liquidating the remnants of long orders, which some bulls deemed appropriate given the massive imbalance between longs and shorts.
Source: CoinGlass
Previously, bitcoin open interest reached extremely low levels on derivatives platforms that created conditions where short openers had to pay bulls to keep their long positions in the market.
Historically, a large imbalance between orders has been a perfect condition for the market to short squeeze and fuel BTC’s rally. Unfortunately, that was not the case yesterday as the bears finally managed to push down the price of the first cryptocurrency, sparking a small cascade of liquidations.
To sue
What’s Next for Bitcoin?
Yesterday’s pump confirmed fears of most cryptocurrency industry pundits, who were betting on another drop before a reversal. Unfortunately, bitcoin still has some room for correction and we could see a decline to the same levels we saw in June when the price of the first cryptocurrency fell to the $17,000 price range.
The tight monetary policy, the upcoming rate hike and other factors will not allow the first cryptocurrency to quickly return to the top of the market, especially in the absence of growth factors.
The Ethereum merger could have been a catalyst for the market rally, but for now it is only delivering inflows to Ethereum and keeping other cryptocurrencies in a bear market
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