The crypto markets are witnessing a massive wave of liquidations amid Bitcoin’s (BTC) correction to a major psychological level.
The latest data from crypto data aggregator Coinglass shows that in the last 24 hours, 119,302 traders were liquidated for an amount of $409.80 million.
Over the past day, Bitcoin fell to a low of around $40,300 on crypto exchanges Binance and Coinbase. BTC has risen slightly since hitting the 24-hour low and is trading at $42,301 at the time of writing.
Traders who were long Bitcoin were the hardest hit by the corrective measure, witnessing losses of more than $90.9 million over the same period. Meanwhile, those who expected BTC to fall in a straight line were also liquidated as BTC bears absorbed more than $13.23 million in losses.
Ethereum (ETH) traders were also hit by a series of liquidations, racking up losses of more than $80 million. Meanwhile, the rest of the crypto markets saw around $70 million in liquidations.
Analyst Credible Crypto predicts that Bitcoin will recoup its losses from the past day in a V-shaped recovery. The trader notes that the uptrend is likely to continue on the way to reaching his $60,000 target.
“Anytime we get big upsides at this stage of the market, V-reversals will be much more common than a typical ‘sideways base period’ we’ve become accustomed to.
We’ll probably get something like below to complete this fix. That is, non-impulsive V-reversal from these lows to a higher low (essentially completing a running flat) and then an impulse seemingly out of the blue to $60,000. What this means is that even though a reversal is imminent, there may be some minor sideways action for a few days before the next impulsive move begins.
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Featured image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong
