The cryptosphere had almost forgotten the color red, so many green candles were on the charts in recent weeks. An inevitable correction has therefore occurred between the night of yesterday and today. For the more optimistic, this translated into a bloodbath.
A descent into hell for $ 3,300
Before this small disaster, the price of Bitcoin (BTC) had just reached a high of 19,500 dollars on November 25 at 2 p.m. on the Coinbase platform – at only 295 small dollars of its ATH of 2017.
But twenty hours later, the price hit a low point at only 16,200 dollars (this November 26, around 10 a.m.).
This vertiginous drop of 3,300 dollars corresponds to almost 17% of decline .
The price of a bitcoin has since recovered a bit, stabilizing around $ 17,100 at the time of this writing. Obviously, this little movement of panic caused a lot of damage among the most enthusiastic, who were already seeing Bitcoin explode the 20,000 dollars.
Positions worth Billions of Dollars Liquidated
The movement of FUD (fear, uncertainty and doubt) began 24 hours before the start of the fall in prices when the crypto-exchanges suddenly saw large quantities of BTC arrive.
As CryptoQuant CEO Ki Young Ju reports, these massive inflows of bitcoin to the exchange platforms are likely due to whales (the biggest investors). This then suggested that these same whales were preparing to take their profit – at least in part – by seeing Bitcoin reach its old all-time high.
All Exchanges Inflow Mean increased a few hours ago.
It indicates that whales, relatively speaking, deposited $BTC to exchanges.
But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.
— Ki Young Ju 주기영 (@ki_young_ju) November 26, 2020
Given the explosive situation, it was enough for a first domino to fall before dragging all the others.
Thus, according to the analysis of Larry Cermak, Director of Research at The Block, the forced liquidations of positions were chained (not to say ” unleashed “) until reaching a total of nearly 1.9 billion dollars liquidated.
Nearly $1.9 billion worth of OI was liquidated in the last 24 hours. By far the most on Binance – about $840M pic.twitter.com/FhWo0jEUmL
— Larry Cermak (@lawmaster) November 26, 2020
In more detail, the disaster mostly occurred on the Binance exchangwe, where just over $ 837 million of long Bitcoin positions were closed prematurely.
The Huobi and OKEx crypto exchanges follow, with $ 441 million and $ 242 million in urgently closed positions, respectively.
The current price drop may be the first big drop new investors are going through in the bitcoin thrill ride. However, we must not be dying, because the trend remains very clearly bullish for Bitcoin. Regardless of the next direction in BTC prices, hang your belts!