Bitcoin futures long liquidation

Bitcoin, Since Massive Long-Liquidations, Crucial Scenarios Now!

Hi,

Welcome to this analysis about Bitcoin , we are looking at the 6-hour timeframe perspectives. In the last 24 hours massive long-liquidations have taken place in Bitcoin , it was the highest volume of liquidations seen so far in 2021 and it was great for us in the VIP channel to enter rightly on the short-side before these heavy bearish volatilities have shown up. These events determine one more time how volatile the cryptocurrency market keeps and that it is necessary to right evaluate these changes in direction and prepare on it with the right line-up as the market can change swiftly and fastly like it is in no other asset class, this is why a long-only-approach will not properly serve when the market shows up with bearish alignments like it was the case here.

As when looking at my chart we can watch there how Bitcoin now recently with the bearish volatility moved into this main ascending-trend-line where it firstly confirmed support also in the 300-EMA, now it is likely that Bitcoin will test the upper resistances from where a pullback firstly should be expected the crucial part then comes when Bitcoin moves on with the wave C to test the remaining support levels as marked with the orange box, when Bitcoin manages to bounce sufficiently within this zone and move higher possibly into the bullish-stabilization-zone that can lead to further bullish approaches, otherwise when this does not happen and Bitcoin increases bearish pressure this will lead to a wave-C-extension below this zone.

In this manner, thank you for watching the analysis and great contentment for everybody supporting, all the best!
«There are many roads to prosperity but one must be taken.»

Information provided is only educational and should not be used to take action in the market.

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Bitcoin Futures Sees Massive Long Order Liquidations in a Short-Lived Dive

Bitcoin Futures Sees Massive Long Order Liquidations in a Short-Lived Dive

Bitcoin [BTC] price logs another flash of volatility, however, this time to the opposite side. Hours back, around 11: 00 hours UTC Bitcoin exhibited a volatility of over $300 with an instantaneous dump, followed by a buy back.

The price dropped to a low around $7052, but a bullish engulfing channel pushed it back to testing the 50-period EMA above $7200.

BTC/USD 1-Hour Chart on Bitstamp (TradingView)

This could possibly be the effect of holiday trading which induces high volatility in times of low volumes. Mati Greenspan, notes in his daily mailer,

When things aren’t moving you can’t make money, but even when they do start to move they tend to move too quickly.

Moreover, the volume is not as low as one might think. According to skew data, the volume is at par with the last couple of weeks.

The price move also caused massive long liquidations on BitMEX, Okex, and Huobi. On Huobi, the market has been witnessing long liquidations since 24th December as the market’s inclination is growing towards the short site.

Furthermore, on Okex, the long/short ratio rocked between the bulls and the bears as the volatility lasted. The Open Interest in Bitcoin also saw a flash drop during the price drop. The drop in price could indicate long liquidations on Okex as well.

However, the both the OI and long/short ratio have recovered since then, while the funding rate on the hourly is positive as well.

Open Interest and Trading Volume on Okex

On BitMEX, the move caused a long liquidation of worth $8.6 million. The funding rate of BitMEX in the past three hours has been negative.

Furthermore, Being the last day of trading expiry of the futures contracts on CME, the volume of December contracts dropped while the January contracts volume skyrocketed.

BTc/USD 1-Day Chart on Bitstamp (TradingView)

A daily close price action is beginning to squeeze the Bollinger Bands, as it looks like Bitcoin will log another Doji on the daily scale. The price of Bitcoin at 15: 00 hours UTC on 27th December is $7173, the daily opening was at $7195.

Do you think Bitcoin long liquidations will lead to a drop? Please share your views with us.

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Bitcoin Drops Below $31K Before Rebounding; $8B in Liquidations Triggered

The price of bitcoin is now down more than 30% so far in May, on track for its worst month since November 2018.

Omkar Godbole

Bitcoin Drops Below $31K Before Rebounding; $8B in Liquidations Triggered

Bitcoin tumbled for a fifth-straight day, putting the largest cryptocurrency on track for its worst month in more than three years and leading a full-flown retreat from digital-asset markets.

At press time, bitcoin (BTC) was changing hands at around $38,500, after dropping below $31,000 earlier Wednesday. The price was down 9.8% since 0:00 coordinated universal time (8 p.m. ET Tuesday). As recently as April, the price had hit an all-time high of close to $65,000.

The latest crash shook out bullish leverage from cryptocurrency derivatives markets, leading to more than $8 billion in position liquidations due to margin calls.

Just in May alone, the bitcoin price is down more than 30%.

This month’s slide was exacerbated by recent tweets by Tesla CEO Elon Musk, who terminated the electric-vehicle maker’s acceptance of BTC as a form of payment because of his concerns about the environmental impact of bitcoin mining. But as reported by CoinDesk, indicators from price charts and blockchain data had been signaling a downturn recently.

The top cryptocurrency slipped earlier Wednesday to below its 200-day simple moving price average (SMA) of around $39,825, which had been seen as a key level of support. The average has come into play for the first time since April 29, 2020. Back then, the long-term technical line was located at about $7,977.

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While bitcoin has shed 40% in the past 24 hours, other top 10 coins such as ether (ETH), internet computer token (ICP), binance token (BNB), cardano (ADA), XRP (XRP) have suffered even bigger losses, according to data source Messari. Bitcoin’s 24-hour slide the biggest single-day percentage sell-off since the crash of March 12, 2020.

Amid the market-wide risk aversion, exchanges offering crypto futures have liquidated $8 billion worth of positions, according to data source bybt.com. Bitcoin futures account for almost 50% of the total market-wide liquidations.

Total liquidations seen in the past 24 hours, however, are still short of the record $10 billion worth of forced closures observed on April 17, when bitcoin fell sharply from $60,000. Since then, the market has mostly seen daily liquidations of less than $4 billion, barring today’s brief spike.

The data shows the major part of the recent decline from $55,000 to below $40,000 is primarily driven by increased selling in the spot market. The number of bitcoin held on exchanges has risen by more than 65,000 BTC in the past seven days, according to data provided by Glassnode. Investors transfer coins to exchanges when they want to liquidate their holdings.

The first leg of the correction – the drop from $60,000 to $52,000 seen in mid-April – was mainly due to the record liquidations. Forced closure of longs added to bearish pressures around the cryptocurrency, leading to an exaggerated price drop.

What’s next for bitcoin

The correction could soon run out of steam as technical indicators show oversold conditions. Further, the order book is flashing signs of capitulation, the point at which traders trying to enter long positions begin throwing in the towel.

“We are nearing capitulation to the downside,” crypto research firm Jarvis Labs noted in a post on Medium early Wednesday, while drawing attention to the relatively low concentration of leveraged longs at deeper price levels on Binance, the world’s largest crypto exchange by trading volume.

“The pink bubbles buried underneath the price represent 25x leveraged longs. Red bubbles are 50x longs, which hardly exist, and yellowish-orange are 100x longs, which are virtually non-existent,” the post on Medium said. “Bubbles above the price line are showing not only a large amount of 25x shorts but also 50x and even 100x.”

Capitulation is widely considered the final stage of the price sell-off.

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Bitcoin margin data — BTC 1H

Bitcoin price & total long and short interest

Left Y: BTC total longs & shorts

Right Y: Price USD << price >>

Mana vs. Pain

24h health score

7d health score

14d health score

Longs & USD interest rate

Left Y: USD daily interest rate

Right Y: BTC longs

Shorts & BTC interest rate

Left Y: BTC daily interest rate

Right Y: BTC shorts

Percent longs and shorts

Hedged and unhedged shorts

Today’s sentiment changes (past 24h)

Bitfinex long & short liquidations past 14d

Bitfinex total long & short liquidations (timeframe)

Bitmex long & short liquidations past 14d

Left Y: USD/contract volume liquidated

Bitmex total long & short liquidations (timeframe)

Left Y: USD/contract volume liquidated

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Longs vs. shorts

On the Bitcoin price chart you can see:

• Bitcoin price in USD (white line)
• Total Bitcoin longs (green line)
• Total Bitcoin short (red line)

Both longs and shorts are measured in BTC. On shorter timeframes (say below one week) longs and shorts are typically almost straight lines because they don’t fluctuate much and because of Y-axis scaling.

The two charts below the price chart show the same values for total longs and shorts, but capture the short term flucturations much better.

Pain & Mana score

Pain and Mana is a health-score that is calculated by Datamish. Both longs and shorts have a pain and a mana score. Pain is bad and mana is good.

Pain score increases when traders are adding to Bitcoin positions while the market is moving against them. So they could be in for a squeeze.

Increased mana score happens when traders are closing their Bitcoin positions while price is moving with them. They are regaining energy. A positive mana score can sometimes happen after the other side has been squeezed successfully.

Pain and mana score is dependent on timeframe, so Datamish calculates the scores for three different timeframes: 24h, 7d, and 14d.

Pain and mana score does not tell you anything you couldn’t figure out for yourself by looking at the price chart, the longs chart, and the shorts chart. If you want to learn more the about how pain and mana score works then go to one of the time three frames and consider how price, shorts, and longs have developed within in that timeframe.

Longs and USD interest rate

On the chart you can see:

• Left-Y: Daily interest rate for USD (grey line)
• Right-Y: Total longs measured in Bitcoin (green line)

Changes in long positions are important to consider. Increasing longs express a bullish sentiment, and decreasing longs express a bearish sentiment.

If USD interest rate is high, traders are less likely to borrow USD to go long Bitcoin.

Interest rate can be pushed up if there is little funding available, so it is a good idea to keep an eye on both interest rates and available funding. At the top of the page there is a section where you can see how much USD funding is available.

The risk of liquidation means that margin traders are «weak hands» that can easily be shaken out of their positions. If there are too many longs this can result in a long squeeze.

Shorts and Bitcoin interest rate

On the chart you can see:

• Left-Y: Daily interest rate for Bitcoin (grey line)
• Right-Y: Total shorts measured in BTC (red line)

If Bitcoin interest rate is high, traders are less likely to borrow Bitcoin to go short. Interest rate can be pushed up if there is little Bitcoin funding available, so that is worth considering. At the top of the page there is a section where you can see how much Bitcoin funding is available.

Changes in short positions are important to consider. If shorts increase then sentiment is bearish, and if shorts decrease then bearish sentiment is decreasing.

The risk of liquidation means that margin traders are «weak hands» that can easily be shaken out of their positions. If there are too many shorters then that can lead to a short squeeze.

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Bitcoin [BTC] Futures Order Book Flips: Bakkt’s New Record and $400 Mn Short Liquidations

Bitcoin [BTC] price created history yesterday as price recorded the third-highest percentage rise in its history. The prior two surges were recorded in 2011 when the Bitcoin was just known among the geeks.

Eight years ahead, Bitcoin has become a global financial instrument traded across esteemed platforms. CME, Bakkt, LedgerX, and so on are regulated platforms for options trading on Bitcoin.

The reported volume of trading of Bitcoin Futures contracts on CME is 43000 BTC. While the futures market closed on the last Friday of the month, the price continues to surge during the weekend.

Bakkt set a new record in trading volume on Friday as it breached the 1000 contracts mark after one month of its launch.

While the current rise was witnessed due to a massive surge, the previous high was recorded two days earlier on a drop. Hence, volatility in price has attracted many players to trade Bitcoin.

Today we set a new daily record of 1,179 Bakkt Bitcoin Futures contracts traded

Short Liquidations

In less than six months, Bitcoin’s price witnesses two short squeezes as bears are literally “rekt.” The massive rise of over 36% was partly contributed to the break above $9400 levels. Post that, the price logged. It’s the longest candlestick on the hourly with a $900 rise.

BitMEX witnessed a 50% drop in short orders, as it reached new lows.

BTC Shorts on Bitfinex (TradingView)

According to datamish, the total amount of short liquidated on BitMEX is about $410 million. Short liquidations heightened the buying impulse as price recorded at high at $10,350.

Bitcoin [BTC] Long/Short Interest and Basis

The long interest in Bitcoin has further increased above 80% on major crypto exchanges like Bitfinex and Okex. The long/short ratio on Okex is 1.9; hence, nearly two times the short orders. Nevertheless, the long interest among top traders declined by about 10%. Currently, the top 100 traders on Okex are near parity according to the long to long ratio.

BTC basis on Okex increased to a whopping $54 signaling massive long orders. The current difference between futures and spot prices on the exchange is $36.25.

Hence, the Buy Bitcoin narrative seems to the echoing across the futures market as well. Furthermore, traders can expect heightened volatilities in the next few days.

Do you think Bitcoin will reach new ATH or a correction is on the cards? Please share your views with us.

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