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Key Takeaways
Why was there an increase in crypto liquidations in the last 24 hours?
The bullish impulse on November 9 and 10 some traders took long positions, anticipating a continued uptrend, but the rally quickly lost steam and reversed.
Where will the crypto markets go?
Since most of them follow Bitcoin and BTC traded within a certain range, traders could expect short-term volatility and moderate bullishness.
On November 11, Bitcoin [BTC] returned to the $104.7k level. This price dip erased the small gains and short-term bullish momentum that BTC had built up the previous day.
Although the price didn’t really move to anything new in the last 24 hours, market participants thought it would, and positioned themselves accordingly.
Because of their pain, some of them faced liquidations. MintGlass Data shows that $379.9 million in liquidations took place in the last 24 hours. Bitcoin faced $81.43 million in liquidations, while Ethereum [ETH] witnessed $71.94 million in positions being forcibly closed.
Bitcoin liquidations were almost evenly split between long and short positions, $41.75 million and $39.68 million, respectively. Ethereum was slightly lopsided, with long positions of $43.45 million at stake.
Interestingly enough, ZCash [ZEC] was one of the assets with the largest volume of liquidations, worth $31.24 million. Of that, $26.66 million was bullishly positioned.
Why have crypto liquidations increased in the last 48 hours?
Source: BTC/USDT on TradingView
On November 9, Bitcoin rose from $101.6K to $106.6K early the next morning.
The 1-hour chart showed a spike in buying volume, while moving averages confirmed a shift to bullish momentum.
Despite positive news on November 10 and strong futures on the S&P 500 suggesting further upside potential, BTC failed to continue its rally. Instead, the 1-hour chart showed a range-bound pattern that has persisted for the past 36 hours.
This range extended from $104.7k to $107.1k. Until this short-term range is breached, traders can keep an eye on the extremes of the range and be wary of betting on a breakout prematurely.
Since Bitcoin tends to lead the crypto market and also tends to attract the most amount of capital, charting its price movements can help BTC and altcoin traders prepare for the next step.
The three-day liquidation heatmap above showed that there was a juicy bag of liquidity beneath current prices. The $103.8k-$104.4k was a magnetic zone, and a stronger zone was also seen from $100.7k-$102.4k.
Given the bandwidth formation, it is likely that we see a BTC dip to $103.8k, followed by a move towards the overhead liquidity cluster at $107.5k.
Traders should be careful not to try to breakout and time the next trend early.