The post $198 Million in Shorts Liquidated in 24-Hour Frenzy appeared on BitcoinEthereumNews.com.

TLDR Bitcoin surged to $66,000, causing $233 million in crypto derivatives liquidations Short positions were hit hard, with $198 million in shorts liquidated The rally affected other cryptocurrencies, with Ethereum and Solana outperforming Bitcoin A “three-line break chart” suggests Bitcoin may be headed for record highs above $73,000 The daily candlestick chart still shows Bitcoin trapped in a descending channel since March Bitcoin has made a significant move, climbing to $66,000 and causing a stir in the cryptocurrency market. This price surge has led to substantial liquidations in the crypto derivatives sector, with short positions taking the brunt of the impact. Over the past 24 hours, Bitcoin’s price jumped by about 6%, reaching levels not seen since late September. This rally wasn’t isolated to Bitcoin alone. Other cryptocurrencies followed suit, with Ethereum and Solana even outperforming Bitcoin, posting gains of 8% and 7% respectively. The sudden price movement triggered a wave of liquidations in the cryptocurrency derivatives market. Data from CoinGlass shows that a total of $233 million worth of crypto derivative contracts were liquidated during this period. Notably, short positions, which bet on price decreases, suffered the most. These bearish bets accounted for $198 million of the liquidations, representing about 85% of the total. Bitcoin Price on CoinGecko Bitcoin-related contracts led the liquidations, accounting for 39% of the total. Ethereum came in second, while other cryptocurrencies like Solana, SUI, and NEIRO also saw significant liquidations. This event, known as a “short squeeze,” occurs when a rapid price increase forces traders holding short positions to buy back the asset to cover their positions, further driving up the price. The feedback loop created by these forced buybacks can lead to increased volatility and more dramatic price movements. While the daily price charts show Bitcoin still trapped in a descending channel that…

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Filed under: News - @ October 15, 2024 8:20 am