It has just been reported the fact that crypto witnessed more than $400 million in liquidations as Bitcoin suffered a correction. Check out the following reports below.
Crypto sees massive liquidations
The cryptocurrency market is currently experiencing a significant increase in liquidations as Bitcoin (BTC) settles down to a crucial psychological level.
According to Coinglass, a crypto data aggregator, in the last 24 hours, 119,302 traders have been liquidated, amounting to $409.80 million.
Bitcoin has recently hit a low of approximately $40,300 on Binance and Coinbase. However, it has slightly bounced back since then and is currently trading at $42,301 at the time of writing.
Traders who had invested in Bitcoin and were expecting its value to increase, faced significant losses of over $90.9 million due to a corrective move.
On the other hand, those who predicted that Bitcoin’s value would drop in a straight line also suffered losses of over $13.23 million.
Similarly, Ethereum (ETH) traders also saw a cascade of liquidations, resulting in losses of more than $80 million. Additionally, other cryptocurrencies witnessed about $70 million in liquidations.
However, analyst Credible Crypto predicts that Bitcoin will recover its losses in a V-shaped pattern. He believes that this uptrend will continue, and Bitcoin will likely reach his target of $60,000.
“Whenever we get major flushes at this stage of the market, V-reversals are going to be a lot more common than a typical ‘sideways basing period’ that we have gotten used to seeing.”
The same notes continued and stated the following:
“We probably get something like below to wrap up this correction. That is: non-impulsive V-reversal off these lows into a higher low (to basically complete a running flat) and then an impulse that seemingly starts out of mid-air to $60,000. What this means is, while a reversal may be imminent, might get a little sideways action for a few days before the next impulsive move begins.”