In a surprising uptick, Bitcoin (BTC) soared to a new yearly high of $35,950 on November 1, marking a robust support level at $35,000. This unexpected surge caused a ripple effect across the market, triggering over $100 million in short liquidations, a scenario where traders who bet against the asset’s performance faced substantial losses.
Data revealed that within a 24-hour window surrounding this price hike, a whopping 60,851 traders faced liquidations, culminating in a cumulative loss of roughly $160 million. A closer analysis showed that nearly 62% of these liquidations were short positions, indicating a significant number of traders were caught off guard by Bitcoin‘s sudden price ascent.
Binance faces the brunt: $76 million liquidated
The liquidation trend was not evenly distributed across all platforms. Binance, one of the leading cryptocurrency exchanges, bore the brunt with $76 million worth of liquidations. This development sheds light on the high-stake environment of cryptocurrency trading, where a sudden price movement can have a domino effect, causing a cascade of liquidations and substantial financial losses for traders betting against the market trend.
Further insights were gleaned from a liquidation heatmap for the BTC/USDT pair on Binance, which revealed a significant liquidation threshold at the $35,000 mark. This threshold, if violated, could potentially trigger a downward trend for Bitcoin.
Moreover, two substantial liquidation levels were identified at around $34,000, each estimated to be approximately $140 million, underlining the critical significance of these price points in market dynamics.
The surge in Bitcoin’s value is not an isolated event but rather part of a broader bullish trend in the cryptocurrency market. Several factors are contributing to this uptrend, including increased institutional interest, the growing adoption of Bitcoin as a payment method, and favorable regulatory developments in various jurisdictions.
Next stop for Bitcoin $36,500
However, some analysts caution that Bitcoin’s price could still experience considerable volatility. Despite its recent rally, the cryptocurrency is known for its price swings, and investors should be prepared for potential downturns.
On the technical front, Bitcoin’s next resistance level is at around $36,500, according to data from TradingView. If it manages to break through this level, it could potentially set off another round of short liquidations, further fueling its rise.