Bitcoin Leverage: Lack Of Liquidations Could Indicate Another Wave Of Selling
Bitcoin finally broke below the $40K point this past weekend. This had sent the cryptocurrency back towards six-month lows. One thing though was that liquidations or the digital asset remained lower than expected. The current liquidation volumes lay well below the volumes that have accompanied previous crashes like this one. This could be a very important indicator for the market. Bitcoin Liquidations Remain Low In Shakeout Previously, whenever the price of bitcoin had dumped this hard, liquidation volumes have quickly risen. This is due to the massive sell-offs that follow such crashes as....
Related News
There is a trend emerging in the bitcoin trading landscape. The trend is towards higher and higher leveraged products. If you do not have leverage or zero trade fees at your exchange, then you can expect to see tumbleweed go by every day. Give the users leverage or zero fees, otherwise expect exchange death. Stigma – Socialised Losses and high leverage. There is a chance of Socialized losses when trading at some futures platforms with high leverage. When there are a lot of liquidated positions, the system can be at a loss. To prevent the system from losing money everybody that made a....
After a massive cascade of liquidations, Bitcoin price could be heading towards recovery, based on network fundamentals. Over $2.7 billion worth of futures contracts got liquidated in the last 24 hours, based on data from Bybt.com. This caused the price of Bitcoin (BTC) to see a large drop in a short time frame as it plunged from over $41,000 to sub-$32,600.BTC/USDT 4-hour price chart (Binance). Source: TradingView.comWhy would mass liquidations cause Bitcoin to drop?In the futures market, liquidations of positions occur because traders are borrowing additional capital to trade with larger....
The DeFi space crashed along with the rest of the market on May 19, but the liquidations mechanisms passed the biggest stress test. The savage sell-off that took place in mid-May fueled volatility in markets and triggered liquidations among numerous decentralized finance protocols. Like an earthquake, the market fall exacerbated the biggest wave of liquidations in DeFi history. The market experienced a higher amount of liquidation on May 19 than in the past two years in the DeFi space. As part of the Market Insights bi-weekly newsletter, Cointelegraph Consulting teamed up with Covalent to....
Data shows the crypto futures market has taken a $380 million beating over the past day as Bitcoin has rebounded above $30k. Out of this amount, $240 million liquidations have belonged to short traders. Crypto Shorts Observe $240 Million In Liquidations Over Last 24 Hours In case anyone isn’t aware of what “liquidations” are, it’s best to first take a brief look at the workings of margin trading in the crypto futures market. When an investor opens a, say, Bitcoin long or short contract at a derivatives exchange, they first have to put forth some collateral called....
Bitcoin on-chain data shows the crypto exchange Binance observed large inflows amounting to almost 10k BTC yesterday. Bitcoin Netflow Shows A Huge Positive Spike As 10k BTC Enters Binance As pointed out by an analyst in a CryptoQuant post, the BTC netflow had a big positive spike yesterday, a sign that’s usually bearish for the price. The “all exchanges netflow” is an indicator that measures the net amount of Bitcoin entering or exiting wallets of all exchanges. The metric’s value is simply calculated by taking the difference between the inflows and the outflows.....