The overall cryptocurrency market is confusing traders and investors following a significant price jump across assets. During the Asian trading hours, top assets including Bitcoin (BTC) and Ethereum (ETH) were down by over 4%. However, both BTC and ETH have recently experienced a massive 3% and 4% price surge in the last 1 hour, according to coinmarketcap data.
Traders see $36.6 million of liquidation
Along with BTC and ETH other cryptocurrencies including Solana (SOL), BNB (BNB), XRP, and (XRP) also experienced similar price surges in the last 1 hour. Following this surge, traders have witnessed a massive liquidation totaling $36.6 million. Amidst this huge liquidation, short seller has liquidated a significant $33.57 million of their position, while bulls have liquidated nearly $3.05 million of theirs. This massive short liquidation suggests that bulls may potentially be returning to the market.
Besides this massive liquidation, the total future Open Interest of BTC, ETH, and SOL experienced a notable surge in the same period (1 Hour).
According to CoinGlass data, BTC has experienced a 2.7% surge in Open Interest (OI) in the last hour and a 4.2% surge in the last 4 hours. Similarly, ETH has seen a 2% increase in OI in the past hour and a 5.2% increase over the last 4 hours, while SOL has recorded a 2% increase in OI in the last hour and a 5% increase in the last 4 hours.
Bitcoin price performance and technical analysis
According to the expert technical analysis, Bitcoin on the daily time frame looking bullish and is currently at an important level near $58,500. If BTC on a daily time frame or on a 4-hour time frame gives a strong candle closing above the $58,500 level then there is a high chance that BTC will rebound to the $60,000 level. Additionally, the Relative Strength Index (RSI) is in the oversold area and formation of bullish divergence meaning that there is a chance of potential recovery.
Despite this bullish outlook, BTC is still moving below the 200 Exponential Moving Average (EMA) which shows the BTC trend is still bearish.
Currently, BTC is trading near the $57,550 level and it has experienced a 4% price surge in the last 24 hours. Following this massive price surge, the 24-hour trading volume jumps by 46% showing strong investors and traders participation.