Nearly 120,000 crypto traders are having their positions obliterated over the last 24 hours as Bitcoin (BTC) launches an abrupt rally above $20,000.
Data from derivatives trading analytics platform Coinglass reveals that on October 25th, more than $806.39 million worth of long and short positions were liquidated as the crypto markets at large pulled off a sudden rally led by Bitcoin.
Traders who were betting on the crypto markets to sustain its downtrend were blindsided as they suffered the full force of the upswing. Coinglass shows that more than $704.75 million worth of short positions were annihilated on the same day.
Meanwhile, crypto traders who mistimed the rally also succumbed to the return of volatility. The analytics platform reveals that over $101.39 million worth of long positions were taken out on October 25th as well.
With Bitcoin trading back above $20,000, closely followed crypto strategist Capo warns his 561,900 Twitter followers that the recent rally is likely a setup for a massive bull trap.
According to Capo, he sees Bitcoin igniting one more leg up before trapping BTC bulls and correcting all the way down to his bottom target of $14,000.
“The fact that this retracement is happening before taking the last high is a good sign. In my opinion, we will see the last push up to $21,000 this week. Time pivots are October 27th and November 2nd (interest rates). Potential bottom about mid-November.”
Fellow crypto analyst Smart Contracter says that before any additional BTC rally could take place, the king crypto must first eliminate its immediate resistance.
“And we’re back above $20,000. Lovely to see us out of that smaller range but unfortunately we are still in a much larger range.
Need to clear $20,500 now which will probably also be a challenge.”
At time of writing, Bitcoin is swapping hands for $20,117, up nearly 4% on the day.
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