Over the past few days, an extensive number of both bullish and bearish positions have faced substantial liquidations, resulting in crypto liquidations surging to almost $300 million within a 24-hour period.
The primary factor behind this sudden increase in liquidations was a rapid price spike in Bitcoin [BTC], breaching a crucial resistance level and triggering a cascade of forced liquidations throughout the market.
Approaching $300 Million in Crypto Liquidations
According to data from Coinglass, the total amount of crypto liquidations nearly reached $240 million on October 14.
Bearish positions experienced the most significant impact, with approximately $206 million liquidated, while bullish positions saw around $35 million being liquidated.
However, the dynamics shifted in the subsequent trading period, with liquidations of bullish positions exceeding $187 million the next day. The bearish positions continued to be under strain, facing over $123 million in liquidations.
This cumulative figure marked the second-largest liquidation event of the month, following only the substantial $500 million liquidation that occurred on October 1.
As of the latest data, bullish positions are still bearing the brunt, with liquidations surpassing $25 million in the ongoing trading session.
Consistent Bitcoin Liquidation Patterns
The swift price movement in Bitcoin prompted the recent wave of crypto liquidations. Following a prolonged period of minimal price volatility, the sudden surge in Bitcoin led to a series of liquidations, particularly hitting bearish positions.
Analysis by CryptoCrypto of the liquidation data revealed that on October 14, Bitcoin liquidations amounted to over $94 million, with bearish positions accounting for $89 million.
In the subsequent session, liquidations of bearish positions decreased to nearly $50 million, while liquidations of bullish positions rose to $27 million.
This trend indicates that the recent price upsurge in Bitcoin has disproportionately impacted short traders as the momentum continues to build.
Bitcoin Price Movements
Reviewing Bitcoin’s price chart, on October 14, the price surged by more than 5%, significantly impacting short positions, which encountered liquidations surpassing $200 million.
In the following day’s trading, Bitcoin sustained its upward trend, registering a 1% increase. This time, bullish positions faced the majority of the liquidation pressure in the market.
At the time of reporting, Bitcoin was traded around the $67,000 price mark, indicating a slight uptick and further complicating the trend of crypto liquidations.