The Recent Bitcoin Slump: Liquidations and Losses
Bitcoin, after days of trading sideways, took a negative turn for the bulls, dropping below $29,000 and hitting its lowest price in over a month. This decline has resulted in nearly $100 million in liquidations for traders.
- Bitcoin remained calm for several consecutive days, which is atypical for the volatile crypto market.
- The cryptocurrency stayed within a tight range between $29,000 and $29,500, using $29,000 as its resistance line.
- However, during the early Asian trading session on Tuesday, Bitcoin slumped to $28,750, its lowest price since June 21.
- Altcoins such as Dogecoin, Solana, Litecoin, Bitcoin Cash, Avalanche, Polygon, and Stellar have also experienced declines.
- Over-leveraged traders, particularly those with long positions, have been greatly impacted by this volatility.
Data from CoinGlass reveals that over $100 million worth of liquidations has occurred in the past 24 hours, with long positions accounting for 85% of that amount. More than 35,000 traders have been liquidated, and the largest single order, worth over $1 million, took place on Bybit.
Hot Take: Crypto Market Volatility Strikes Again
The recent slump in Bitcoin’s price has not only affected the primary cryptocurrency but also caused losses for traders across the market. The high volatility of the crypto space has resulted in significant liquidations, primarily due to over-leveraged long positions. This serves as a reminder of the risks associated with trading in a market that can experience sudden and drastic price movements. Traders should remain cautious and carefully manage their positions to mitigate potential losses.
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