Bitcoin Gets Wrecked: $132M Liquidated in Just 4 Hours!

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MARKETS TREND

Bitcoin’s recent decline below the 50 EMA suggests bearish momentum, with the price failing to hold above the key psychological level of $100,000.

A further drop below $97,678 could accelerate selling pressure toward $94,512.

However, a recovery above $101,383 might bring buyers back into the market, potentially challenging higher resistance zones. Traders are closely monitoring these levels to gauge Bitcoin’s next move in the coming sessions.

$132 Million Liquidated in Bitcoin Long Positions

Bitcoin’s drop triggered a wave of liquidations in the derivatives market. Over 24 hours $371.94 million was liquidated, $132 million of that was on Bitcoin longs. $128 million of that was in just 4 hours. Here are the Sunday numbers:

  • Bitcoin Futures Open Interest: $64 billion+. Activity is still high despite the volatility.
  • Global Trading Volume: $21.80 billion. Volume picked up in the late afternoon.
  • Market Movers: Tether (USDT) was the most traded, $67 billion of the $83.94 billion in volume.

These numbers show the market is still strong despite the short term volatility.

Investor Sentiment Reflects Greed Amid Fluctuations

Despite the price drop, sentiment is still optimistic. The Crypto Fear and Greed Index from http://Alternative.me is at 71, which is “greed”.

Bitcoin’s dominance is still at 57.9% and Ethereum is 11.1% of the total market. This shows the big coins are still in control despite the pullback.

Outlook for the Weeks Ahead

Sunday’s sell off was a short term uncertainty but the high volume and open interest shows investors are still confident. Bitcoin’s price and liquidations are the tug of war between sentiment and corrections as January ends.

Traders and institutions will be watching global markets closely to see what happens next and whether it will settle or shake the crypto market.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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