- The cryptocurrency market saw $118 million in liquidations in the last 24 hours, primarily targeting bearish traders, with Bitcoin accounting for over $68 million in liquidations.
- The data indicates a massive shakeout of short positions, suggesting that bears are under significant pressure, with Binance and HTX experiencing the highest liquidations, especially in short positions.
- Bitcoin has breached significant resistance at $62,000 and is approaching the crucial $64,500 level, with the potential for further gains around $68,000 if the momentum continues, although caution is advised as a pullback could occur if $64,500 is not decisively broken.
The cryptocurrency market has seen massive liquidations of bearish traders over the past day as Bitcoin pushes higher. Ethereum has also seen strong gains.
Massive Squeeze on Shorts
With about 88% of liquidations coming from short traders, the data shows a massive shakeout of bearish positions. This points to bears being under severe pressure as bulls assert control. The two exchanges with the highest liquidations were Binance and HTX.
Bitcoin Breaches Crucial Levels
Bitcoin has broken above resistance at $62,000 and now approaches $64,500, a key psychological barrier. If bulls can maintain momentum, $68,000 would be the next target. Caution is warranted until $64,500 is decisively broken, otherwise a pullback to $61,000 support could occur.
Evidence of Over-Leveraged Bears
Investigating the data shows futures open interest on Binance plunged by nearly 4,000 BTC. This highlights over-leveraged shorts being liquidated. The liquidation event also extended to altcoins like SOL and SUI in similar fashion.
Possibility of Continued Rally
The liquidation of shorts raises the potential for additional upside. Traders should watch for a clear break above $64,500 in Bitcoin, which could signal further significant gains lie ahead for crypto.
