As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market volatility, and the recent Bitcoin (BTC) liquidations have certainly been intriguing. The data from X account Ltrd suggests that we witnessed something unusual on a relatively mature market, with Coinbase traders seemingly leading the charge.
The number of Bitcoin (BTC) being forcedly sold off has reached a three-year high due to a recent drop in its price, pushing the market towards a commonly anticipated level.
As a researcher, I’ve recently uncovered intriguing findings from X Ltd’s latest report, which suggests extraordinary trading patterns amidst the 11% plunge in the overall cryptocurrency market capitalization on December 9th.
Analysis: Coinbase traders sold Bitcoin “aggressively”
As a researcher, I observed that Bitcoin lived up to its anticipated performance during the inaugural Wall Street trading session of the week, experiencing a dip down to approximately $94,000.
Approximately half of a significant price drop, as seen from December 5th, could potentially be filled, according to the analysis, since it represented an opportunity or ‘market inefficiency’ with a high probability (96%) of being corrected.
Although it occurred as predicted, the liquidations triggered by the price decrease didn’t resemble the sequence from last week.
“Today’s dump resulted in the biggest liquidation since 2021,” Ltrd summarized.
By examining the trends in trades, it became apparent that Coinbase, a leading U.S. trading platform, played a significant role in initiating the downward trend.
Intriguingly, we noticed that Coinbase traders started selling intensely about an hour prior to the massive price drop.
“Of course, the biggest drop was triggered by a liquidation cascade, but this constant selling pressure was crucial in pushing the price into a region where overleveraged positions were forced to close.”
As a researcher, I’ve created a side-by-side comparison chart that shows the cumulative volume delta (CVD) data for two major platforms: Coinbase and the world’s leading exchange, Binance. This comparison will help us understand the growth patterns and trading volumes on these platforms over time.
“Certainly unusual”
Over the past 24 hours up until December 10th, data from the monitoring system CoinGlass indicates a total of $1.6 billion in cross-crypto liquidations across all platforms.
Among them, traders who had bet on Bitcoin’s long term increase suffered fewer losses compared to those who had bet on Ethereum’s long term increase. Specifically, the amount of Bitcoin positions that were forced to close was $142 million, while for Ethereum it was $208 million.
“The biggest long liquidation of this bull cycle so far,” CoinGlass confirmed to X followers.
As some criticized the “bloodbath” in the altcoin market, others remain hopeful that this could lead to a restoration of more balanced and steady market conditions.
After the loss of that leverage, the market has been restructured, and many altcoins have switched their crucial resistance levels to become support. It looks promising,” is one way to paraphrase this statement by the popular trader Jelle in a natural and easy-to-read manner.
Meanwhile, Letterter highlighted the “strange” occurrence of the cascade, as cryptocurrencies like XRP found themselves under close scrutiny.
a series of major selling orders flooded a well-established market, causing it to plummet by more than 5%.
“We don’t know exactly what happened, but it’s certainly unusual.”
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2024-12-10 12:23