In the past 24 hours, BTC's long liquidation volume has soared to over $200 million. The cumulative potential liquidation amount reaches a maximum of 7
In the past 24 hours, BTC's long liquidation volume has soared to over $200 million. The cumulative potential liquidation amount reaches a maximum of 7.16 billion US dollars. Where is Bitcoin expected to go 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, people have begun to spread the idea that Bitcoin may shift from focusing on short-term profit taking to long-term holding. 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. Bitcoin has been rising since mid September and has risen 21% from its low of $24920 so far. As of the time of publication, this rebound has reached a peak of slightly over $30000 in the past 24 hours.
The rebound has begun to show signs of potential pullback, 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 entered the oversold zone. Interestingly, despite the outflow of funds from the Money Flow Index (MFI), there has been a recent rebound, further increasing the likelihood of a reversal.
Leverage adjustments as long-term prospects show confidence
Please note that BTC has fallen below the price level of $30000. But this raises questions 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 reflected by 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 starting point as they have a significant impact on price trends. Glassnode data shows that the number of whales has been increasing 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 holding less than 10000BTC but exceeding 1000BTC have been reduced by one address.
The above survey results indicate that Bitcoin may not have been under significant selling pressure from whales. But where does the selling pressure come from? Well, as mentioned earlier, the market has shifted towards long-term attention.
This result will inevitably encourage more people to execute leveraged long-term transactions. Therefore, leveraged liquidation may exacerbate ongoing selling pressure.
In addition, market data shows that long liquidation has surged to over $200 million in the past 24 hours. The cumulative potential liquidation amount reaches a maximum of 7.16 billion US dollars. Please note that this only represents data on Coin Security.
After the pullback, the leverage level has decreased. However, after a slight correction, the cumulative potential liquidation amount decreased to $5.46 billion. This indicates that there are still significant leveraged long positions. Therefore, the bullish expectations in the futures sector remain high.
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