A sharp upward move in Bitcoin’s price, breaking through the $118,000 resistance level, resulted in significant market liquidations, predominantly affecting traders holding short positions.
Data reveals a stark imbalance in Bitcoin-specific liquidations over a 12-hour period. Short liquidations totaled $3.66 million, vastly overshadowing long liquidations of just $197,660. This represents a dramatic 1,722% disparity between liquidated short and long positions for Bitcoin.
The impact extended across the broader cryptocurrency market. Total liquidations reached $55.54 million within the same timeframe. Short positions accounted for the majority at $34.16 million, while long liquidations amounted to $21.38 million.
Altcoins were not spared, with Stellar (XLM) experiencing the highest altcoin liquidation volume at $5.09 million. Ethereum (ETH) and Ripple (XRP) also faced substantial liquidations.
Nearly 97,264 traders were affected by these market moves, underscoring the significant risks associated with leveraged trading for both institutional and retail participants.
Analysts note that Bitcoin’s ability to decisively breach key resistance points suggests underlying bullish momentum. However, the high volume of liquidations serves as a stark reminder of the persistent risks posed by excessive leverage in the volatile crypto market.