The recent crypto market crash has sent shockwaves through the industry, causing a state of panic among traders. Bitcoin and altcoins have been hit hard, with the Bitcoin price plummeting and dragging down the entire market with it. Tens of thousands of traders have been forced to liquidate their positions, resulting in hundreds of millions of dollars in losses in just a single day.
In the last 24 hours, the Bitcoin price has experienced a significant decline, dropping below $57,000 before making a slight recovery. However, the damage has already been done, with long traders bearing the brunt of the losses. Data from Coinglass shows that $292.8 million worth of crypto liquidations have occurred, leading to 105,458 traders being liquidated. The majority of these liquidations occurred in the last 12 hours as Bitcoin fell from $61,000 to $57,000, resulting in $204.97 million in liquidations.
The largest liquidation event took place on the Huobi exchange, where a single liquidation call saw $10.49 million lost. Other major exchanges, such as Binance, OKX, and Bybit, also recorded significant liquidations, further adding to the overall losses in the market. Long traders have been hit the hardest, as the continuous downward trend in Bitcoin’s price has led to liquidations across the board.
Despite the dominance of long liquidations, the recent bounce in Bitcoin’s price has caused a shift in the market sentiment. Short traders are now starting to feel the pressure as the price shows signs of recovery. Data from Coinglass indicates that long liquidations have decreased from 88.61% in the last 24 hours to 56.48% in the last hour. If the price continues to rise, short traders could face further liquidations as the bearish wave wanes.
While the recent market crash has eroded positive sentiment, the daily trading volume for Bitcoin has seen a notable 50% increase, reaching $37.59 billion. Bulls are now working to establish a support level to facilitate the ongoing recovery. Currently, Bitcoin is trading at $57,909, with a 3.87% decline in the last day. The cryptocurrency is down 5.23% on the weekly chart and 15.95% on the monthly chart, highlighting the volatility and uncertainty that currently defines the market.
The recent market crash has sent shockwaves through the crypto industry, causing massive losses and liquidations for traders. While the market sentiment remains bearish, there are signs of recovery as Bitcoin’s price begins to stabilize. The coming days will be crucial in determining whether the market can bounce back from this crisis.
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