The digital asset market is experiencing a relief rally, with the world’s largest cryptocurrency, Bitcoin (BTC), inching closer to the significant price level of $31,000. Interestingly, data shows that the current Bitcoin price rally contradicts traders’ sentiment.
According to Coinglass data, more than 61.6k traders have been liquidated in the past 24 hours, with the total long and short crypto liquidation surpassing $216 million. The most substantial liquidation order, XBT/USD, valued at $9.30 million, was executed on the Bitmex crypto exchange. As Bitcoin’s price broke through the $30,000 level, over $158 million worth of short positions established by traders were liquidated in the last 24 hours, making up 73% of the total $216 million liquidation. This implies that traders expected Bitcoin’s price to fall following the recent rally.
In the past week, Bitcoin’s price has increased by more than 20%. It has surged over 4% in the last 24 hours, breaking the essential $30,000 level. According to CoinMarketcap, Bitcoin’s price reached $30,628 on Thursday and is currently trading at an average price of $30,141. Meanwhile, its 24-hour trading volume has grown by 14%, reaching $31 billion.
While the current price rally may instill optimism in many investors, it’s essential to consider the potential drawbacks. The liquidations and high trading volumes indicate that the market may be experiencing excessive speculation driven in part by the fear of missing out (FOMO) on potential profits. This could potentially lead to volatility and sudden price movements in the short-term and may be unsustainable in the long run.
As the digital asset market forges ahead, investors weigh their options and strategies amidst this ongoing price rally. Although there are hopes that the uptrend will continue, the market’s speculative nature calls for caution. Investors must conduct thorough research and keep track of market trends to make informed decisions while keeping in mind that the author or their sources cannot be held accountable for personal financial loss.
In conclusion, the current Bitcoin price rally defies traders’ expectations, who anticipated a price drop following the recent surge. The market’s resilience has prompted excitement among investors, but it is vital to consider the potential risks associated with such market behavior. As the market keeps evolving, investors should remain cautious and informed to ensure a balanced approach in their cryptocurrency investments.
Source: Coingape
