This article is available in Spanish.
In a dramatic turn of events, Bitcoin price has once again crossed the $64,000 threshold, after rising 7.7% from a four-day low of $59,400. This sudden price jump has sent shockwaves through the crypto market, with data from Coinglass revealing a significant wave of liquidations following the unexpected rally. Short sellers, who expected a decline, found themselves in a difficult situation as Bitcoin exceeded their expectations.
Remarkably, Coinglass liquidation details shows that more than $182 million worth of positions were liquidated on various exchanges in the last 24 hours, the majority of which were short positions.
Bitcoin price breaks above $64,000 again
Bitcoin rose above $64,000 in the early hours of Monday, October 14, after breaking above a tight range over the weekend and rising 2.53% in the past 24 hours. Bitcoin reached a high of $64,500 in the past few hours, which is its highest point so far in October. As such, Bitcoin price has now crossed above the month’s opening, with October’s monthly return finally turning green for the first time.
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However, the price action was not positive for everyone. According to the data in the image below, the sudden surge has been costly for many traders with short positions. Bears betting on a continued decline were hit hard as Bitcoin’s ongoing rally triggered a wave of liquidations.
Of the $182 million in liquidations recorded across exchanges, a whopping $115.76 million came from short positions, while $66.28 million came from long positions.
Binance has led the cryptocurrency market in liquidations over the past 24 hours, accounting for 42.48% of total liquidations. On Binance alone, approximately $77.33 million worth of positions were wiped out, of which 54.23% were short positions. OKX follows closely behind, with $58.71 million in liquidations, with an even higher percentage of 62.84% being short positions.
HTX, Bybit and CoinEx also saw significant liquidations, albeit on a smaller scale. HTX recorded $27.35 million in liquidations, of which a whopping 87.81% were short positions. Bybit came next with $12.62 million in liquidations and a short rate of 65.92%, while CoinEx rounded out the list with $3.50 million in liquidations, of which 81.34% came from shorts.
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More liquidations in prospect?
Bitcoin’s recent revival brings back the possibility of declining Uptober sentiment. This interesting rally could set the stage for a rise in the second half of October, similar to what was observed in September.
If this rally were to continue for the rest of the month, more short positions could be liquidated in the coming hours. Bears, betting on the rise of Bitcoin, may rush to close their positions to minimize losses. The decrease in selling pressure as short sellers leave the market could further fuel Bitcoin’s rise.
Featured image created with Dall.E, chart from Tradingview.com