- Bitcoin’s price dropping below $37,000 triggered $130M in crypto market liquidations, mainly impacting long positions
- Binance bore the brunt of the liquidations, accounting for nearly $55M of the total
- Binance’s BTC/USDT liquidation heatmap shows significant leverage extended down to $36,300, risking further price drops and leverage wipeouts
Bitcoin‘s plunge below $37,000 triggers massive liquidations. Binance bears the brunt as long positions get wiped out.
Bitcoin Slips Below $37k
On November 27, Bitcoin slipped below the $37,000 mark, recording its lowest value since November 22 and reaching $36,800. This plunge led to considerable liquidations worth $130 million in the crypto market, according to Coinglass.
Long Positions Take Major Hit
A substantial portion of these liquidations, approximately $100 million, were from long positions. Binance oversaw the lion’s share of these liquidations, accounting for nearly $55 million, according to Coinglass.
Examining Binance’s BTC/USDT Liquidation Heatmap
Analyzing the Binance BTC/USDT Liquidation Heatmap reveals significant leverage, approximately $20 million, at the $36,700 mark. Furthermore, there is leverage extended down to $36,300. Consequently, if Bitcoin’s price were to decrease further, we could expect a subsequent escalation in price reduction and extensive wipeout of leverage.
Conclusion
The recent slip in Bitcoin’s price below $37,000 led to over $130 million in liquidations, predominantly impacting long positions on Binance. This demonstrates the risks associated with overleveraged positions during periods of market volatility.
