Bitcoin has witnessed a dramatic shift in its daily liquidation as BTC’s recent price action puts bulls on the safer side.
Most specifically, Bitcoin has seen its total liquidations hit a massive $102.35 million in a matter of a few hours, with short liquidations totaling a massive $95.96 million, according to data from Coinglass.
During this massive liquidation event, only $6.38 million was seen coming from long positions, marking a notable difference—about 1,533% in favor of one of the parties.
With BTC short positions being suddenly wiped out at a rate 1,533% higher than long positions, this significant liquidation imbalance happening in favor of the Bitcoin bulls reflects strong confidence in Bitcoin’s future price action despite the persisting crypto market uncertainties.
Meanwhile, the data further revealed that just about half a million dollars were recorded in BTC liquidations in the last one hour.
With the bettors flipping positions this time, long positions were seen covering most of the liquidation during the period.
This time around, $547.42k out of a total liquidation of $552.13k was converted by long positions. With shorts catering for only $4.71k, it appears that the market has seen a sudden shift in sentiment as the market begins to show negative signals.
As such, Bitcoin bettors on the bullish board are slowly being wiped out by a sudden reversal.
With Bitcoin showing mixed price action on Friday, it saw a brief surge during the latter hours of the day, which was suddenly reversed as the price trailed downward by just 0.58%, putting long positions at risk of being flushed out.
Even though Bitcoin has shown resilience around the $107,000 mark, moving slowly toward $108,000 during the liquidation session, it appears that investors’ confidence is weakening as they become nervous about what’s to come for the price of Bitcoin.
The sudden decline in Bitcoin’s price, which saw the 1-hour liquidation trend move in favor of bears, has traders bracing for more turbulence into the weekend.
Nonetheless, Bitcoin traders are taking caution as the massive liquidation imbalance that favored long positions might already be winding up.
