A trader lost $9.91 million due to the liquidation he suffered on the Bitmex exchange.
According to analysts, BTC could be bottoming out; there are also those who believe that the fall will continue.
The price of bitcoin had a drop of more than 7% in the last 24 hours. At the time of writing this article, each unit is trading close to USD 39,000.
Altcoins, as is often the case, follow the trend of the pioneering cryptocurrency and are also in the red. The fall of ether (ETH) and Binance Coin (BNB) is almost 8.5% and they are located at USD 2,870 and USD 430, respectively.
Lower capitalization coins had a higher price decrease percentage. This is the case, for example, of cardano (ADA), whose price fell by 9% to touch USD 1.24. For its part, solana (SOL) is trading at USD 123, which represents a reduction in its price of 9.8%.
USD 727 million were liquidated on cryptocurrency exchanges
Holders, investors who buy these coins as a long-term investment, may take comfort in the confidence that their holdings will appreciate in value in the future. Those who do not enjoy the falls are those who operate with leverage in bitcoin derivatives exchanges and other cryptoactives.
Report the CoinGlass statistics site, that in the last 24 hours, liquidations on exchanges exceeded USD 727 million and, in total, 189 thousand traders were liquidated. This website adds that the largest liquidation occurred on Bitmex. An individual trader lost $9.91 million.
If we look only at the bitcoin derivatives market, we see that the liquidations were for USD 2.49 million. This means, if one takes into account the current price of the cryptocurrency, that leveraged traders lost 63.84 BTC, which went to exchanges.
Is this the bottom or is it following the drop in bitcoin price?
The big question for bitcoin investors and market analysts is whether this is the bottom, or if the decline continues.
If Woo’s analysis were correct, perhaps, this is a good time for those who can, to buy more BTC, waiting for the imminent increase in its price.
However, there are also not so optimistic price predictions. For example, according to the glassnode company weekly report, the bears (i.e. the bearish traders) are ahead and the downtrend would be more likely to continue.
Tenkan Trading, the pseudonym of a trader who was reviewed on other occasions by this medium, had warned yesterday (when the price of BTC looked like it would head higher), that the chances of a fall were still there.
According to this technical market analyst, it would not be impossible for BTC to return to prices that nor they have been seen for many months, for example, the area around $20,000.