There is no boring day in the crypto market. In the past few hours, the price of Bitcoin (BTC) and many altcoins have changed. Again, this resulted in enormous liquidation volumes across the area. The data reveals that in the past hour alone, both long and short positions on major exchanges were liquidated for almost $ 400 million.
This happened as the BTC price fell slightly more than $ 3000 during the fall from $ 37,700 to $ 34,380 and returned to the current transaction price of $ 36,000. Apart from that, long positions constituted 86.5% of the liquidation. It means $ 343 million of the total liquidation.
Binance leads the way in liquidation volumes, followed by Huobi and Bybt. According to the CryptoPotato news, the increase before the spike could be a bull trap, as the purges in the last 24 hours are also largely in favor of the bears. Over the past day, over $ 1 billion of liquidity was seen, 85% of which was long positions.
In total, over 108,770 traders have seen liquidation in the last 24 hours. According to the news source, this could indicate two things: First, although the market seems to be in favor of the bulls especially in the last few weeks and volatile in the long run, this does not guarantee that the price will not retreat. Second, the current state of the market, as can be seen from the numerous liquidations; overly leveraged.
On the other hand, a report published by Weiss Crypto Ratings, a leading crypto rating service provider, says there are several factors that show that Bitcoin is not over its bull run.
Bitcoin withdrawal, multiple and fast ATHs
Bitcoin gained 78% in the month after the week it hit an all-time high. Weiss Crypto predicted this to be expected, as well as other analysts. He even stated that he saw the pullback as an opportunity to buy from the decline and allow new investors to enter the market before rebounding:
“WHEN THE BITCOIN WAS DROPPED AT THE HIGHEST LEVEL OF ALL TIME, WE ALREADY BEEN TRADING AT THESE LEVELS FOR A CLOSE TO THIS TIME. BITCOIN HAS BEEN SO FAST GAIN IN RECENT TIMES, THAT PERSPECTIVE LOSS IS NORMAL. "
Therefore, such bull runs caused by rapid price increases are not uncommon and even known as an unreasonable enthusiasm in traditional markets.
“AND SHARP WITHDRAWALS ARE COMING WITH MASSIVE PRICE INCREASES. THIS IS THE ENTIRE STORY OF THE CRYPTO; BIG MOVES COME WITH THE EXPLORATION OF ALL NEW REGIONS. "
Bitcoin and crypto market maturing
Bitcoin's hashrate and mining difficulty are currently recording all-time highs. This shows that there is higher processing power and more security for the BTC network.
In addition, BTC's bullish action is based on the value added to its network, and this will be further strengthened in terms of security and value over time, especially with increased adoption.
Institutional investments
Institutional investors sped up BTC's rally. Partnerships of companies such as PayPal, MicroStrategy and Square, crypto regulations, and Bitcoin investments have inspired more confidence in the crypto market. All of this points to a maturing market with great growth potential, according to Weiss Crypto:
"FROM HERE, FOCUS ON THE FUNDAMENTALS THAT POINT A BTC PRICE MUCH HIGHER IN THE LONG TERM."
