The long-term liquidation of BTC has surged to over $200 million in the past 24 hours. The cumulative potential liquidation amount reached 7
The long-term liquidation of BTC has surged to over $200 million in the past 24 hours. The cumulative potential liquidation amount reached 7.16 billion US dollars. Where does BTC expect to move in the next few days?
- Bitcoin shows multiple signals, indicating that the market is still in the stage of short-term profit taking.
- Long term expectations remain strong due to unexpected pullbacks and a surge in liquidation.
In the past few days, the idea that Bitcoin [BTC] may shift its focus from short-term profits to long-term procrastination has been circulating. The market may have responded to these expectations, but what if short-term profit taking remains effective?
Let's review the latest performance of Bitcoin to fully understand the situation. Since mid September, Bitcoin has been rebounding, and so far it has risen 21% from its low of $24920. As of the 24 hours before the press release, this surge has reached a level slightly above $30000.
The rebound has begun to show signs of potential decline. But considering that prices peaked at resistance levels in August, this is not surprising. But that's not all. The Relative Strength Index (RSI) shows that the upward trend over the past 24 hours has been pushed towards oversold areas. Interestingly, the recent rebound occurred in the context of outflows from the Money Flow Index (MFI), which further increases the likelihood of a reversal.
Long term outlook showing confidence, extorting leverage
Please note that BTC has pulled back the price level below $30000. But this raises doubts about whether selling pressure is increasing. After peaking on October 16th, foreign exchange flows have decreased in recent days. The latest foreign exchange flow data shows that demand is slightly higher than the selling pressure manifested through foreign exchange inflows.
Despite the increase in foreign exchange outflows, we should also determine whether the sustained selling pressure has sufficient momentum. The evaluation of whale activity is a good start as they have a significant impact on price behavior. Glassnode data shows that whales have been gathering since mid October.
The latest data further shows that the number of addresses holding at least 10000BTC has surged to a monthly high. According to the latest analysis, addresses with BTC less than 10000 but BTC greater than 1000 have been reduced by 1 address.
The above findings suggest that Bitcoin may not have been under significant selling pressure from whales. But where does the selling pressure come from? As mentioned earlier, the market has been shifting towards long-term attention.
This result will inevitably encourage more people to engage in leveraged long-term trading. Therefore, leveraged liquidation may exacerbate ongoing selling pressure.
In addition, market data shows that long-term settlements have surged to over $200 million in the past 24 hours. The cumulative potential liquidation amount reached 7.16 billion US dollars. Please note that this only represents data on Binance.
After the pullback, the leverage level has decreased. However, after a slight correction, the cumulative potential liquidation volume decreased to $5.46 billion. This indicates that there are still a considerable number of leveraged long positions. Therefore, bullish expectations for the futures market remain high.
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