The post HBAR Bulls Slapped Back Into Consolidation Zone appeared on BitcoinEthereumNews.com.

HBAR, the native cryptocurrency in the Hedera ecosystem has been trading within a consolidation zone since August. It just attempted its third effort at exiting the zone but it turned out to be a bull trap characterized by heavy long liquidations. HBAR has been rallying since 5 November, just as was the case with most cryptocurrencies. This was courtesy of the bullish market sentiment that has prevailed so far this month. However, this recent attempt initially pushed past short term resistance at the $0.063. HBAR soared as high as $0.077 on 12 November in a move that appeared to have been a bull trap. This is because price quickly pulled back by more than 20%. The pullback occurred after price dipped into overbought territory. – Advertisement – HBAR price action / Source: TradingView The cryptocurrency’s thwarted bullish attempt has all the makings of a bull trap. This warrants an evaluation of the pullback’s impact. Long Positions Get Obliterated HBAR’s latest upside may have encouraged a surge in leveraged long positions. This is especially considering that many of the major coins including Bitcoin have been rallying to new highs. A look at liquidation data confirmed the bull trap scenario. According to Coinglass, HBAR’s total liquidations on 12 November peaked at $886,150. Short positions on the same day peaked at $539,450. These were the highest single day liquidation figures observed in the last 6 months. – Advertisement – HBAR total liquidations / Source: Coinglass Long liquidations also peaked at $620,750 on 13 November against $54,110 in short liquidations. The surge in liquidations on the same day that price pulled back confirmed that liquidations may have played a role in the robust sell pressure. The liquidations were also in line with the recently observed surge in open interest. HBAR futures open interest was…

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Filed under: News - @ November 17, 2024 8:11 pm