Bitcoin wipes out millions as it pulls back after hitting $64K. If you held a short position in the market, there is a high chance you are part of 79,700 traders who have seen their funds wiped out in the last 24 hours. This happened because Bitcoin’s [BTC] price flipped past $64,000 on the 28th of February. Moments later, the coin’s price plunged below the $60,000 threshold.
From Coinglass data, AMBCrypto observed that the total liquidation amount was over $790 million. Short positions accounted for $438 million, while long liquidations were around $352 million.
The road beyond $69,000 may be here.
Furthermore, the derivatives information portal revealed that Bitcoin liquidations were worth $298.98 million. Ethereum [ETH], whose price had surged above $3,300, registered $126.83 million in the wipeout. For those unfamiliar, liquidation occurs when a trader’s leveraged position is automatically closed. This often occurs because the trader can no longer satisfy the margin requirements.
If Bitcoin’s price continues to increase, more positions could be liquidated. AMBCrypto checked the Liquidation Heatmap to ascertain the chance of a rise. Bitcoin wipes the Liquidation Heatmap could also show the possible prices where positions could face another round of wipeouts. According to our analysis using HyblockCapital’s data, Bitcoin’s price could rise to $75,000 within the next few weeks.
In addition, the indicator revealed no major resistance along that path. However, if Bitcoin hits $70,000, many short positions between $49,000 and $56,000 could face liquidation.
Bears are almost non-existent.
Daily, bulls maintained strong support at $55,450. However, on the drive to $64,000, Bitcoin encountered modest resistance at $57,395. However, buying pressure helped me clear the way.AMBCrypto noticed a 15.01% spike in BTC between the firm support and its surge to $61,837.Regarding price potential, the Directional Movement Index (DMI) predicted that the currency would continue to rise. At press time, the +DMI (green) was 39.34. In contrast, the -DMI (red) was 2.62.
The indication difference suggests that bears may be unable to pull Bitcoin back. Furthermore, the average Directional Index (ADX) reading was 57.82. The ADX (yellow) indicates whether the direction movement is strong or weak. If the ADX reading is less than 25, it indicates weak directional movement. As a result, the high ADX and the rising price of Bitcoin signals that the currency may reach a higher value.
What is Litecoin up to?
According to CoinMarketCap, LTC’s price has only risen minimally in the last 24 hours, while other cryptos have seen encouraging upticks. When writing, LTC was trading at $75.59 with a market value of more than $5.6 billion. However, the coin has a surprise that may result in a bullish rally in the coming days.
According to the most recent statistics, LTC’s price followed a previous pattern, which resulted in a bull run in 2021. The coin’s price was on the cusp of breaking above the diagonal trend line, indicating a likely northward price movement.
Is a bully rally inevitable?
Because the pattern on LTC’s chart suggested a bull rally, AMBCrypto examined Litecoin’s on-chain parameters to determine whether that outcome was possible. An examination of Glassnode data revealed that LTC’s Network Value to Transactions (NVT) Ratio had decreased. The NVT Ratio is calculated by dividing the market capitalization by the transferred on-chain volume (in USD).
When the metric drops, the asset is undervalued, indicating that a price increase is imminent. Aside from that, a few other indicators seemed promising for the coin. For example, Litecoin’s MVRV ratio increased. Its social volume remained high, indicating its appeal. Its weighted sentiment graph also turned positive, indicating an optimistic attitude towards the coin ruling the market. Bitcoin wipes. However, network activity decreased slightly last week as its velocity fell.
Is BONK falling behind PEPE, SHIB, and DOGE?
Despite the popularity of meme coins like Dogecoin [DOGE], Shiba Inu [SHIB], and Pepe [PEPE], BONK [BONK] struggled to gain recognition. Despite a price increase, BONK lagged in market capitalization, with intense competition from existing and new players.
While DOGE, SHIB, and PEPE dominated the meme currency market, BONK’s inability to meet their market value became clear. The appeal of these established meme currencies overshadowed BONK’s growth, leaving it out in the competitive scene.
BONK has a tough time
Newcomers, such as WIF, were quickly gaining traction, posing a threat to BONK’s market position. The impact of meme currencies on the Solana [SOL] network led to BONK’s falling market capitalization. As interest in new meme currencies grows, traders in the sector may seek newer options.
Price remains steady
Despite the contest for market supremacy, BONK’s price has increased by 12.41% in the last 24 hours. The bullish flag pattern seen this week hinted at additional expansion, with the price potentially reaching the $0.00001749 resistance mark. Bitcoin wipes The Relative Strength Index (RSI) of 78.04 suggested potential overbought conditions, necessitating close monitoring for possible corrections.
AMBCrypto’s assessment of BONK’s market sentiment revealed that the Chaikin Money Flow (CMF) was 0.12 at press time, indicating positive money flow. The volume has also increased by 74.33% in the last 24 hours, which may contribute to BONK’s price movements.
Analyzing sentiment
Social dynamics, however, painted a contradictory image. Weighted Sentiment grew dramatically during the last four days despite a large fall in overall Social Volume. As a result, although there were fewer conversations overall on BONK, the general attitude was improving, which might impact investment behavior.
The percentage of short positions against BONK, on the other hand, increased to 52%, showing a notable pessimistic attitude among traders. This might result from worries regarding BONK’s market position and capacity to compete with other meme coins successfully.
