Key Points
- Crypto liquidations almost reached $300 million within 24 hours, largely due to Bitcoin’s sudden price surge.
- Short positions suffered the most, with over $206 million liquidated as Bitcoin broke key resistance levels.
The crypto market has seen a significant uptick in liquidations over the past few days, with nearly $300 million liquidated in just 24 hours.
This surge in liquidations was primarily triggered by a sudden price jump in Bitcoin, which broke through a key resistance level, causing a wave of forced liquidations across the market.
Details on Crypto Liquidations
Data from Coinglass showed that crypto liquidations almost hit $240 million on the 14th of October.
Short positions were the most affected, with about $206 million in liquidations, while long positions accounted for roughly $35 million.
The situation changed in the next trading session, with long position liquidations surging to over $187 million. Short positions continued to feel the pressure, with over $123 million in liquidations.
This total represented the second-largest liquidation event of the month, only behind the massive $500 million liquidation that occurred on the 1st of October.
Bitcoin’s Role in Liquidations
Bitcoin’s rapid price movement triggered the recent wave of crypto liquidations. After a period of minimal price action, Bitcoin surged, leading to a series of liquidations, particularly for short positions.
On the 14th of October, Bitcoin liquidations totaled over $94 million. Short positions bore the brunt, accounting for $89 million.
In the following session, short liquidations dropped to almost $50 million, while long liquidations climbed to $27 million.
This trend indicates that Bitcoin’s recent price surge has disproportionately affected short traders as it continues to build momentum.
On the 14th of October, Bitcoin’s price surged by more than 5%, causing a major impact on short positions, which saw over $200 million in liquidations.
The next day, Bitcoin continued its upward momentum, posting a 1% increase. This time, long positions took the majority of the hits in the liquidation market.
At the time of writing, Bitcoin was trading in the $67,000 price range, showing a slight increase and further adding to the complexity of the crypto liquidations trend.
