The crypto markets are witnessing a massive surge in liquidations amid Bitcoin’s (BTC) correction down to a key psychological level.
The latest data from the crypto data aggregator Coinglass shows that 119,302 traders were liquidated in the last 24 hours to the tune of $409.80 million.
In the past day, Bitcoin dropped to a low of around $40,300 on crypto exchanges Binance and Coinbase. BTC has slightly bounced since posting the 24-hour low and is trading at $42,301 at time of writing.
Traders who were long on Bitcoin suffered the brunt of the corrective move, witnessing losses of more than $90.9 million over the same period. Meanwhile, those who were expecting BTC to drop 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 cascade of liquidations, taking losses of more than $80 million. Meanwhile, the rest of the crypto markets saw about $70 million in liquidations.
Analyst Credible Crypto predicts that Bitcoin will erase its losses in the past day in a V-shaped recovery. The trader notes that the uptrend will likely continue en route to hitting his target of $60,000.
“Whenever we get major flushes at this stage of the market, V-reversals are going to be a lot more common than a typical ‘sideways basing period’ that we have gotten used to seeing.
We probably get something like below to wrap up this correction. That is: non-impulsive V-reversal off these lows into a higher low (to basically complete a running flat) and then an impulse that seemingly starts out of mid-air to $60,000. What this means is, while a reversal may be imminent, might get a little sideways action for a few days before the next impulsive move begins.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong
