2023-08-17 15:33:06
Bitcoin (BTC) and ether (ETH) futures traders posted their biggest losses in more than a month after prices broke below support levels over the past two days, breaking out of the stagnation that characterized the past period. The largest cryptocurrency fell below $28,500 late Wednesday night, marking one of the biggest two-day drops since mid-June. As bitcoin weakened, major cryptocurrencies such as ether, XRP, and solana (SOL) followed suit, with some falling as much as 5%. Liquidation of major token futures crossed the $160 million mark in the past 24 hours, bringing losses to more than $320 million since the start of the week. These significant losses come during one of bitcoin’s lowest volatility periods. At the time of writing, bitcoin futures positions had lost nearly $50 million, followed by ether with $22 million and litecoin (LTC) with $5 million. Traders of bitcoin cash (BCH), solana, and XRP each recorded losses of nearly $4.5 million. Long positions were liquidated Long position trades, i.e. transactions priced at higher exchange rates, accounted for 90% of all liquidations, according to data from Coinglass. A liquidation usually occurs when an exchange forcibly closes a trader’s leveraged position due to the partial or total loss of the trader’s initial deposit. This occurs when the trader cannot meet the margin requirements for a leveraged position or does not have sufficient funds to open the trade. Large liquidations can signal a local top or bottom of a price movement, allowing traders to position themselves accordingly. Open interest, i.e. the number of unclosed contracts, rose by 1.16%, which means that traders opened more positions, but in the end used significantly less leverage – which suggests a lower willingness to take risks. Meanwhile, the trading company QCP Capital stated in a Telegram group at the beginning of the week that in the immediate absence of market catalysts, it expects a gradual decline in exchange rates. They added that price levels between $24,000 and $26,000 can be expected for bitcoin in the coming months.
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