The cryptocurrency market experienced a significant crash from August 27 to 28, liquidating thousands of traders mainly from long positions. Bitcoin (BTC) and Ethereum (ETH) led the liquidations among other cryptocurrencies, totaling over $333 million lost in 24 hours.
Finbold retrieved data from CoinGlass on Wednesday morning (UTC), showing the damage from these liquidation events in a surprising crash. Essentially, 92,360 crypto traders were liquidated for $333.95 million in the last 24 hours.
In particular, 82.8% were long-position traders who lost over $276.59 million from their bullish bets. The largest single liquidation happened on Binance, with the ETH/BTC pair for $12.67 million lost as ETH crashed.
Interestingly, this recent market crash affected Ethereum traders more than usual, making Bitcoin and Ethereum liquidations nearly the same. The latter led by $2 million, with $104.24 million lost—most of which were also long positions.
Liquidation Heatmap and Total Liquidations. Source: Coinglass
Bitcoin (BTC) and Ethereum (ETH) price analysis
As of this writing, Bitcoin trades at $59,750 and Ethereum at $2,523. The two leading cryptocurrencies have over 4% losses in the last 24 hours, partially recovered from the crash.
Notably, BTC and ETH traded as low as $58,060 and $2,409 – a level some analysts already refer to as a possible bottom that will propel the market to new highs in an incoming bull run.
Bitcoin (BTC) and Ethereum (ETH) 24-hour price charts. Source: Finbold
One of these analysts is the renowned trader CredibleCrypto, who had previously warned of a too-high open interest (OI). The trader made a series of posts during the crash, showing how the OI has mostly reset with these liquidations.
In another post, CredibleCrypto pointed out Coinbase “buying aggressively” and explained he is now looking to build long positions.
“Coinbase is buying the dip aggressively, we’ve had a decent rinse in OI..as previously mentioned I’ve taken profit on main shorts- I think its probs best to be looking for potential longs at this time as opposed to shorts now.”
– CredibleCrypto
Whether it is a good time for shorting Bitcoin and Ethereum, or opening longs for these digital assets is uncertain. Nevertheless, the market has seen solid signals that a bull market is ready to start with favorable macroeconomics and strong demand incoming for crypto.