The closing price of Bitcoin today has fallen below the 70,000 mark, with the closing candlestick pattern showing a long upper wick. Yesterday's rebound reached a high of 71,650 with significant selling pressure. The closing candlestick today has dropped below the bullish candlestick from October 29, indicating strong bearish momentum around 72,000. Let's take a look at the on-chain long and short data.
12-hour data across the network shows that long positions account for 51.81%, while short positions account for 48.19%. Binance's 12-hour data indicates that long positions have reached 53%, while short positions are at 47%, showing that the gap in long and short data is not very large, which is why we are currently experiencing a volatile market.
Now, let's examine the on-chain liquidation data. If Bitcoin drops from around 70,000 to 65,000, long positions would face liquidation of 1.82 billion USD. Conversely, if it rises from the current 70,000 to 75,000, short positions would be liquidated at 2.135 billion USD. Although there is a possibility of a double liquidation of longs and shorts, with a drop to 65,000 followed by a recovery to 75,000 or even higher at 80,000 due to favorable news from the election, that could yield significant profits. However, if it drops to 65,000 and people chase shorts, there may be many who are betting on the bottom. Therefore, institutions will also verify and simulate data plans over the next two days, patiently waiting for results around the critical time nodes of the 4th to the 7th. We retail investors are like a small boat in a vast sea, drifting with the waves when the storm comes.
