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.”
Featured Image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong