Bitcoin Price Rebound Leads to Short Squeeze During Crypto Market Recovery
After a challenging start to the week, the crypto market saw a slight recovery on Tuesday, with almost every top 100 coin by market cap experiencing gains compared to the previous day. However, this upward movement led to over $92 million in liquidations within the past 24 hours, with $62 million attributed to short positions, as per CoinGlass data.
Bitcoin’s price is currently up by 2.7% at $61,746, while Ethereum has increased by 1.8% to $3,394 over the last 24 hours. Notable performers in the past day include meme coins Pepe and Dogwifhat, up by 14.2% and 13%, respectively, along with gaming-focused token Notcoin, which saw a 9.5% increase.
Despite the positive market trend, short position investors faced challenges, with over 33,000 traders being liquidated in the past day. Additionally, approximately $30.6 million in long positions were also liquidated during this period.
A position gets liquidated when a trader’s bet on an asset’s price movement surpasses preset margins based on collateral. Bitcoin had been on a downward trend over the past two weeks, dropping to as low as $59,780 recently, according to Crypto exchange Coinbase.
Several factors contributed to the downward pressure on Bitcoin, including Germany’s sale of seized BTC and the anticipated movement of long-frozen Bitcoin held by the collapsed crypto exchange Mt. Gox. Some analysts are currently debating whether Bitcoin’s price has hit its lowest point.
Overall, the recent market movements have highlighted the volatility and risks associated with crypto trading, emphasizing the importance of careful risk management strategies to navigate the fluctuations in the market.
