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Crypto liquidations alert! What’s next after major $170 mln wipeout

August 1, 2024
in Bitcoin
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Crypto liquidations alert! What’s next after major $170 mln wipeout
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  • On the 30th of July, crypto liquidations dropped to $132 million. 
  • BTC’s liquidation would rise again at $70 while ETH’s would rise near $3.45k.

The crypto market witnessed much volatility over the last few days, which can be attributed to several factors. In the meantime, crypto liquidations increased sharply.

This happened while the Federal Reserve’s decision regarding new monetary policy is expected soon. 

Crypto liquidations increased

Recent data revealed that the crypto market’s liquidations reached $170 million. Most of these positions were longs, which are considered a bullish position.

A possible reason behind this could be BTC’s price action. The king of crypto’s price reached $70k at press time, after which long positions traders liquidated. This happened at a time when seven developments took place.

For an increase, the US government sold $2 billion worth of Bitcoins. Additionally, the Federal Reserve’s policy meeting was held, which was expected to provide insignia on the upcoming monetary policies.

As per AMBCrypto’s analysis of Coinglass’ data, the liquidation did decline on the 30th of July.

To be precise, crypto liquidations touched $132 million, out of which $109.5 million were long positions while $22.74 million were short positions. 

Total liquidations chart

Source: Coinglass

Are BTC and ETH affected?

This rise in liquidation also had an impact on Bitcoin’s [BTC] and Ethereum’s [ETH] price actions, as they turned bearish.

According to CoinMarketCap, both of these coins’ prices dropped marginally in the last 24 hours. At the time of writing, BTC was trading at $65,980, while ETH had a value of $3,311.

AMBCrypto then checked their liquidation heatmaps to find out when liquidation will increase again.

See also  Bitcoin: Why this is the right time to accumulate

As per our analysis, BTC would once again witness a significant rise in liquidation if its price retouches $70k. Before reaching that level, BTC’s liquidation would remain relatively low. 

Source: Hyblock Capital

Mentioning Ethereum, its liquidation would reach $43.5k when its price touches $3.45k. Above that, ETH’s liquidity would rise again near the $3.8 mark. 

Source: Hyblock Capital

AMBCrypto then checked their daily charts to find how likely it is for them to reach the aforementioned level in the short term. The Bollinger Bands revealed that BTC was testing its 20-day Simple Moving Average support.

A successful test of that could allow BTC to begin yet another bull rally. Its Chaikin Money Flow (CMF) also remained bullish as it moved up. But the Relative Strength Index (RSI) supported the bears. 

Bitcoin's daily chart

Source: TradingView


Read Ethereum’s [ETH] Price Prediction 2024-25 


Interestingly, while BTC was testing its support, Ethereum was testing its resistance at its 20-day SMA. The good news was that its RSI registered an uptick.

Additionally, its Chaikin Money Flow (CMF) also moved northward. Both of these indicators suggested that the chances of ETH turning bullish again were high.

Source: TradingView

Next: Bitcoin sell pressure mounts – Here are the main reasons why

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  • On the 30th of July, crypto liquidations dropped to $132 million. 
  • BTC’s liquidation would rise again at $70 while ETH’s would rise near $3.45k.

The crypto market witnessed much volatility over the last few days, which can be attributed to several factors. In the meantime, crypto liquidations increased sharply.

See also  Russian Crypto Mining Hotspot Cracks Down on Illegal Miners

This happened while the Federal Reserve’s decision regarding new monetary policy is expected soon. 

Crypto liquidations increased

Recent data revealed that the crypto market’s liquidations reached $170 million. Most of these positions were longs, which are considered a bullish position.

A possible reason behind this could be BTC’s price action. The king of crypto’s price reached $70k at press time, after which long positions traders liquidated. This happened at a time when seven developments took place.

For an increase, the US government sold $2 billion worth of Bitcoins. Additionally, the Federal Reserve’s policy meeting was held, which was expected to provide insignia on the upcoming monetary policies.

As per AMBCrypto’s analysis of Coinglass’ data, the liquidation did decline on the 30th of July.

To be precise, crypto liquidations touched $132 million, out of which $109.5 million were long positions while $22.74 million were short positions. 

Total liquidations chart

Source: Coinglass

Are BTC and ETH affected?

This rise in liquidation also had an impact on Bitcoin’s [BTC] and Ethereum’s [ETH] price actions, as they turned bearish.

According to CoinMarketCap, both of these coins’ prices dropped marginally in the last 24 hours. At the time of writing, BTC was trading at $65,980, while ETH had a value of $3,311.

AMBCrypto then checked their liquidation heatmaps to find out when liquidation will increase again.

As per our analysis, BTC would once again witness a significant rise in liquidation if its price retouches $70k. Before reaching that level, BTC’s liquidation would remain relatively low. 

Source: Hyblock Capital

Mentioning Ethereum, its liquidation would reach $43.5k when its price touches $3.45k. Above that, ETH’s liquidity would rise again near the $3.8 mark. 

Source: Hyblock Capital

AMBCrypto then checked their daily charts to find how likely it is for them to reach the aforementioned level in the short term. The Bollinger Bands revealed that BTC was testing its 20-day Simple Moving Average support.

See also  Analyst claims Bitcoin halving is 'all hype, no substance' - Is it?

A successful test of that could allow BTC to begin yet another bull rally. Its Chaikin Money Flow (CMF) also remained bullish as it moved up. But the Relative Strength Index (RSI) supported the bears. 

Bitcoin's daily chart

Source: TradingView


Read Ethereum’s [ETH] Price Prediction 2024-25 


Interestingly, while BTC was testing its support, Ethereum was testing its resistance at its 20-day SMA. The good news was that its RSI registered an uptick.

Additionally, its Chaikin Money Flow (CMF) also moved northward. Both of these indicators suggested that the chances of ETH turning bullish again were high.

Source: TradingView

Next: Bitcoin sell pressure mounts – Here are the main reasons why
Tags: AlertCryptoliquidationsMajormlnWhatsWipeout

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