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Bitcoin long liquidations in August reach $280 million already: What’s ahead?

August 2, 2024
in Bitcoin
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Bitcoin long liquidations in August reach $280 million already: What’s ahead?
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  • BTC has remained bullish despite recent fluctuations.
  • More long positions have been liquidated in the current trading session.

Bitcoin [BTC] began the new month with notable price fluctuations, sparking varied market reactions.

Despite ending the previous trading session on a profitable note, it experienced significant liquidation volumes prompted by its price volatility.

Long liquidations dominate 

Analysis of the Bitcoin liquidations chart on Coinglass revealed that the first day of the month witnessed liquidations exceeding $280 million.

A deeper look into the data showed that long liquidations accounted for most of this volume, recording over $231.6 million. In contrast, short liquidations were significantly lower, around $60.8 million.

Further analysis indicated that this spike in long liquidations on the 1st of August was not an isolated incident; BTC had been experiencing a dominance of long liquidations in the days leading up to this event.

This trend suggests that many traders were overly optimistic about BTC’s price movements. This led to a higher volume of long positions being liquidated when the market turned against them.

Bitcoin liquidations

Source: Coinglass

The prevalence of long liquidations highlighted a period of bullish sentiment that was abruptly challenged, causing substantial financial repercussions for those holding leveraged long positions.

The disparity between long and short liquidation volumes underscores the volatility BTC has witnessed in the last few days.

Understanding the cause

AMBCrypto’s analysis of Bitcoin on a daily timeframe chart revealed that it ended the previous trading session with an over 1% increase.

However, long liquidations dominated due to significant intraday volatility despite this gain rather than the session’s closing price. 

See also  Bitcoin could rally once more - Watch out for this on USDT's chart

According to AMBCrypto’s analysis, Bitcoin began trading at approximately $64,609 but subsequently declined to around $62,212. This sharp drop triggered the substantial long liquidation volume observed.

By the end of the day, Bitcoin had recovered and traded at about $65,288.

Bitcoin price trend

Source: TradingView

As of this writing, Bitcoin had declined by over 1% and was trading at around $64,254. If this trend continues, another day of long liquidation dominance is likely.

Bitcoin sees high-volume activity

Bitcoin’s volume trend on Santiment indicated a decent trading volume. The chart revealed that the highest volume in the previous trading session reached around $41 billion.

As of this writing, the volume was already over $38 billion. 


 Read Bitcoin’s [BTC] Price Prediction 2024-25


Despite the current price trend favoring sellers, there is potential for a shift if buyers can take control of the market.

Such a shift could alter the ongoing liquidation trend, potentially reducing the dominance of long liquidations and stabilizing the price movement.

Next: MicroStrategy’s Bitcoin bet: After $800M BTC in July, eyes an extra $2B

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  • BTC has remained bullish despite recent fluctuations.
  • More long positions have been liquidated in the current trading session.

Bitcoin [BTC] began the new month with notable price fluctuations, sparking varied market reactions.

Despite ending the previous trading session on a profitable note, it experienced significant liquidation volumes prompted by its price volatility.

Long liquidations dominate 

Analysis of the Bitcoin liquidations chart on Coinglass revealed that the first day of the month witnessed liquidations exceeding $280 million.

See also  Bitcoin DeFi protocol Threshold proposes merger 'before Justin Sun takes control of WBTC'

A deeper look into the data showed that long liquidations accounted for most of this volume, recording over $231.6 million. In contrast, short liquidations were significantly lower, around $60.8 million.

Further analysis indicated that this spike in long liquidations on the 1st of August was not an isolated incident; BTC had been experiencing a dominance of long liquidations in the days leading up to this event.

This trend suggests that many traders were overly optimistic about BTC’s price movements. This led to a higher volume of long positions being liquidated when the market turned against them.

Bitcoin liquidations

Source: Coinglass

The prevalence of long liquidations highlighted a period of bullish sentiment that was abruptly challenged, causing substantial financial repercussions for those holding leveraged long positions.

The disparity between long and short liquidation volumes underscores the volatility BTC has witnessed in the last few days.

Understanding the cause

AMBCrypto’s analysis of Bitcoin on a daily timeframe chart revealed that it ended the previous trading session with an over 1% increase.

However, long liquidations dominated due to significant intraday volatility despite this gain rather than the session’s closing price. 

According to AMBCrypto’s analysis, Bitcoin began trading at approximately $64,609 but subsequently declined to around $62,212. This sharp drop triggered the substantial long liquidation volume observed.

By the end of the day, Bitcoin had recovered and traded at about $65,288.

Bitcoin price trend

Source: TradingView

As of this writing, Bitcoin had declined by over 1% and was trading at around $64,254. If this trend continues, another day of long liquidation dominance is likely.

See also  Metaplanet adds $2.1 mln to Bitcoin holdings: 'Buy the dip'?

Bitcoin sees high-volume activity

Bitcoin’s volume trend on Santiment indicated a decent trading volume. The chart revealed that the highest volume in the previous trading session reached around $41 billion.

As of this writing, the volume was already over $38 billion. 


 Read Bitcoin’s [BTC] Price Prediction 2024-25


Despite the current price trend favoring sellers, there is potential for a shift if buyers can take control of the market.

Such a shift could alter the ongoing liquidation trend, potentially reducing the dominance of long liquidations and stabilizing the price movement.

Next: MicroStrategy’s Bitcoin bet: After $800M BTC in July, eyes an extra $2B
Tags: AheadAugustBitcoinliquidationslongmillionReachWhats

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