In the past 24 hours, Bitcoin has seen significant short liquidations, especially between the $70,400 to $72,600 range, totaling over $100 million in value. This surge in liquidations indicates that many traders who bet against Bitcoin's price rise were forced to close their positions as the price moved higher. This type of market activity often leads to increased volatility and can propel prices even further upward as short positions are liquidated.
Interestingly, the decrease in liquidations on the lower side suggests that smaller investors might have abandoned their long trades, possibly due to the intense market fluctuations and high volatility. This behavior is reflected in the green Spot CVD (Cumulative Volume Delta), which indicates that spot buying pressure remains strong despite the liquidations.
Overall, Bitcoin's market dynamics show a complex interplay between leveraged positions and spot market activity, with significant liquidations playing a critical role in recent price movements (Cointelegraph) (CryptoMarketStats) (Binance).
