The sudden collapse of Bitcoin and many other cryptocurrencies has resulted in open positions being liquidated to an extent not seen since December 2021.
Over the past 24 hours, the volume of closed positions exceeded $1,1 billion. Longs accounted for $815 million, while shorts accounted for $280 million. Bitcoin outpaced other digital assets in terms of the amount of liquidated positions, reaching $560 million. эфириум came in second place with $86,6 million.
BTC Markets analyst Rachel Lucas attributed the unexpected drop in BTC's price to traders targeting so-called "liquidity pockets" that represent key support barriers, causing them to liquidate positions opened to protect against losses in the event of a decline in the cryptocurrency's value.
Market makers and big players often take advantage of these conditions. They first pushed the price of bitcoin above $100, inspiring enthusiasm among ordinary traders, and then suddenly reversed course to liquidate leveraged positions, both long and short, Lucas said.
According to Rachel, many crypto traders have once again fallen into the trap set by crypto whales. People were swayed by the fear of missing out, bought Bitcoin after its rate had updated its historical maximum, and the rich cats, on the contrary, sold coins to lock in profits. As a result, the price of BTC first rose to $103, and then quickly fell to $680.
Bitcoin rate pump and dump
