- Over the past 24 hours, long liquidations of BTC have exceeded short liquidations.
- In the spot market, the bulls remain in control.
Bitcoin [BTC] According to figures from the US Department of State, the number of long liquidations has exceeded the number of short liquidations in the past 24 hours MintGlass. The data provider said long liquidations totaled $20 million, while the value of short liquidations was less than $10 million.
Source: Coinglass
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In general, long liquidations tend to outnumber short liquidations when the price of an asset falls and futures market participants are forced to close out their long positions.
According to data from CoinMarketCapthe price of the leading coin has fallen by almost 1% in the last 24 hours, while trading volume has fallen by 18% in the same period. This suggested that while the coin’s price remains at multi-month highs, profit-taking activity was gaining momentum.
BTC printing gains for most holders
Data from Santiment estimated BTC’s market value to realized value ratio (MVRV) at 68.96% at the time of writing, the highest level since March 2022.
An asset’s MVRV ratio follows the ratio between the current market price of the asset and the average price of each acquired coin or token of that asset. A positive MVRV ratio above one indicates that an asset is overvalued.
Conversely, a negative MVRV value shows that the asset in question is undervalued, and that if holders were to sell it at the asset’s current price, they would incur losses.
BTC’s MVRV ratio is above 65% and suggests that if all holders were to sell at the coin’s current market value of $34,064, they would realize an average gain of around 70%.
Similarly, the daily ratio of on-chain transaction volume between profit and loss reached the second highest level on October 23 this year. This rose to 3.56%, meaning that for every BTC trade that ended in a loss, 3.56 trades made a profit.
Source: Santiment
Although profit-taking activity is beginning to gain momentum, the spot market remains significantly marked by bullish sentiments. According to the Directional Movement Index (DMI), BTC bulls were in control of the daily market at the time of writing.
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This indicator is used to measure the strength and direction of a trend in a market. With the positive direction indicator (green) at 41.33 firmly above the negative direction indicator (red) at 5.97, the buyers in the market have more power than the sellers.
At 50.43 and in an uptrend, the coin’s Average Directional Index showed that the bears will find it challenging to regain control of the market. An ADX value above 25 is typically interpreted as an indication of a strengthening trend.
Source: BTC/USD, TradingView
