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The cryptocurrency market has seen $118 million in liquidations in the last day, primarily aimed at bearish traders. Bitcoin and Ethereum were at the forefront, with Bitcoin alone seeing over $68 million in liquidations, according to the provided liquidation heatmap.
With about 88% of liquidations coming from short traders, the general sentiment of the market points to a massive shakeout of short positions, indicating that bears are under a lot of pressure. The two companies with the highest liquidations, especially in short positions, were Binance and HTX. It is noteworthy that HTX’s liquidations, which had a 98% short liquidation rate, were heavily biased toward shorts. This illustrates the market’s strong bullish momentum, and it appears that bears were unprepared for the price of Bitcoin to return above $64,000.
It is clear from examining Bitcoin’s recent chart performance that the cryptocurrency has breached significant resistance at $62,000. It is now getting close to $64,500, the next crucial level that has traditionally served as a psychological barrier. Around $68,000 would be the next major target if Bitcoin could maintain this momentum.
Traders should exercise caution, though, as a pullback could occur if $64,500 is not decisively broken, possibly retesting support at $61,000. Investigating the data further reveals that futures open interest has dropped precipitously, especially on Binance futures, where almost 4,000 BTC in open interest were erased.
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This highlights the fact that bearish traders are being squeezed and shows a liquidation of over-leveraged positions. The heatmap also demonstrates that this liquidation event is not unique, as numerous other assets such as SUI and SOL have undergone comparable liquidations.
A healthy shakeout of short positions is reflected in the liquidation sweep, raising the possibility of a further bullish rally. Investors ought to keep an eye on the crucial resistance levels, especially the $64,500 range for Bitcoin. More substantial gains on the cryptocurrency market, with Bitcoin at the forefront, might be possible with a clear break.