The cryptocurrency market has faced significant losses affecting over 193,000 traders and leaving marks on the quotes of leading assets.
The True Picture of Losses
According to CoinGlass, over 193,000 traders lost a total of $891 million in a single day due to margin position liquidations. The biggest losses hit Bitcoin and Ethereum, with liquidations reaching $275 million and $290 million, respectively. Significant losses were also incurred by Solana, Dogecoin, and XRP.
Impact on Bitcoin Market
Long positions incurred the most damage, totaling nearly $757 million compared to $116 million for short positions. Bitcoin recently tested the $122,000 resistance level but failed to break through. Following this, a decline below significant moving averages such as the 20 and 50-day lines has been observed. Bitcoin is currently trading just above $110,000.
Expectations and Forecasts
If Bitcoin can hold above $110,000 and quickly recover to $115,000, it may help stabilize market conditions. However, if the price drops below the support range of $108,000-$110,000, it could lead to further corrections in the market.
The situation in the cryptocurrency market highlights the risks associated with excessive leverage, which has become a major source of volatility. Investors are now closely watching for potential changes in demand in light of the day's grim outcomes.
