- On July 30, crypto liquidations fell to $132 million.
- BTC’s liquidation would rise again to $70, while ETH’s would rise almost $3.45k.
The crypto market witnessed a lot of volatility in the past few days, which can be attributed to several factors. Meanwhile, crypto liquidations increased sharply.
This happened while the Federal Reserve’s decision on new monetary policy is expected soon.
The number of crypto liquidations increased
Recent data revealed that crypto market liquidations reached $170 million. Most of these positions were long positions, which are considered bullish.
A possible reason for this could be BTC’s price action. The price of the king of crypto reached $70,000 at the time of writing, after which long position traders were liquidated. This happened at a time when seven developments took place.
To increase this, the US government sold $2 billion worth of Bitcoins. In addition, the Federal Reserve policy meeting was held, which was expected to provide an insignia for the coming monetary policy.
According to AMBCrypto’s analysis of Coinglass’ factsthe liquidation fell on July 30.
To be precise, crypto liquidations amounted to $132 million, of which $109.5 million were long positions and $22.74 million were short positions.
Source: Coinglass
Are BTC and ETH affected?
This increase in the number of liquidations also had an impact Bitcoins [BTC] And Ethereums [ETH] price action, while turning bearish.
According to CoinMarketCap, the prices of both coins have fallen marginally over the past 24 hours. At the time of writing, BTC was trading at $65,980, while ETH was valued at $3,311.
AMBCrypto then checked their liquidation heatmaps to find out when liquidation will increase again.
According to our analysis, BTC would once again witness a significant increase in liquidation if its price reaches $70,000. Before reaching this level, BTC liquidation would remain relatively low.
Source: Hyblock Capital
If we mention Ethereum, its liquidation would reach $43.5k when the price hits $3.45k. Above that, ETH’s liquidity would rise again around $3.8.
Source: Hyblock Capital
AMBCrypto then checked their daily charts to see how likely it is for them to reach the aforementioned level in the short term. The Bollinger Bands revealed that BTC was testing its 20-day Simple Moving Average support.
A successful test of this could allow BTC to start another bull rally. The Chaikin Money Flow (CMF) also remained bullish during the rise. But the Relative Strength Index (RSI) supported the bears.
Source: TradingView
Read Ethereums [ETH] Price prediction 2024-25
Interestingly, while BTC tested its support, Ethereum tested its resistance at its 20-day SMA. The good news was that the RSI registered an increase.
In addition, the Chaikin Money Flow (CMF) also moved north. Both indicators suggested that there was a good chance that ETH would turn bullish again.
Source: TradingView