The Crypto Market Sees Massive Liquidations as Bitcoin Corrects
The crypto markets are experiencing a significant surge in liquidations as Bitcoin (BTC) corrects down to a key psychological level. According to data from the crypto data aggregator Coinglass, 119,302 traders were liquidated in the last 24 hours, resulting in losses of $409.80 million.
Bitcoin dropped to a low of approximately $40,300 on exchanges such as Binance and Coinbase. However, it has since bounced back slightly and is currently trading at $42,301.
Both long Bitcoin traders and those expecting a straight-line drop suffered losses during this correction. Long traders lost over $90.9 million, while BTC bears absorbed losses of more than $13.23 million.
Ethereum (ETH) traders were also affected by the liquidations, experiencing losses of more than $80 million. The rest of the crypto markets saw approximately $70 million in liquidations.
Analyst Predicts V-Shaped Recovery for Bitcoin
Analyst Credible Crypto predicts that Bitcoin will recover from its recent losses in a V-shaped pattern. The trader believes that the upward trend will continue and eventually reach his target of $60,000.
According to Credible Crypto, major flushes like this often result in V-reversals rather than sideways basing periods. The analyst expects a non-impulsive V-reversal off the recent lows, followed by a higher low to complete a running flat pattern. Afterward, an impulse will seemingly start out of mid-air and propel BTC to $60,000.
Hot Take: Massive Liquidations Shake Up the Crypto Market
The crypto market experienced a significant shake-up as Bitcoin corrected down to $40,000, resulting in over $400 million in liquidations. Traders who were long on Bitcoin and those expecting a straight-line drop both suffered losses during this correction.
Ethereum traders were also hit hard by the cascade of liquidations, with losses exceeding $80 million. However, analyst Credible Crypto remains optimistic about Bitcoin’s recovery, predicting a V-shaped pattern that will ultimately lead to a price target of $60,000.
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