Bitcoin’s Historic Surge Triggers Massive Short Liquidations
In a surprising turn of events, Bitcoin (BTC) soared to an unprecedented high of $119,370, resulting in a significant wave of short liquidations amounting to $123.19 million across leading crypto exchanges in the past 24 hours. This unexpected spike caught many bearish traders off guard, leading to substantial financial repercussions.
Major Exchanges Hit Hard by Liquidations
Among the exchanges, Binance was at the forefront, recording $43.04 million in short liquidations. Bybit followed closely with $37.17 million, while OKX reported $15.67 million, according to on-chain data sourced by Finbold from Coinglass on July 13. Other notable exchanges affected include Gate.io, with $12.63 million, and HTX, at $7.32 million. Overall, a staggering 62.44% of all liquidated positions were shorts, highlighting the impact of this market shift.
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Breakdown of Cryptocurrency Liquidations
Drilling down into specific cryptocurrencies, Bitcoin itself led the charge with $34.06 million in short liquidations. Ethereum (ETH) followed with $22.04 million, XRP at $5.64 million, and Solana (SOL) with $2.61 million in liquidations. This wave of liquidations was largely driven by a short squeeze, as Bitcoin’s breakthrough past critical resistance levels forced short sellers to close their positions. Notably, the presence of high leverage on platforms like Binance and Bybit exacerbated the losses, even with minor price movements causing significant position wipeouts.
What Lies Ahead for Bitcoin?
The future trajectory of Bitcoin remains uncertain, with market analysts offering varied predictions. Some foresee a potential retracement around its current peak. For instance, the pseudonymous cryptocurrency analyst Niels highlighted in a July 13 post on X that the long-term Power Law Analysis chart pinpoints the $119,000 to $120,000 range as a crucial resistance zone. This was illustrated through a chart plotted on a log-log scale, tracing Bitcoin’s historical price movements against power law trendlines that have defined its long-term growth pattern.
At present, Bitcoin is grappling with a cluster of upper trendlines, indicating formidable resistance ahead. Should BTC break above the $120,000 level, it could pave the way for further gains targeting the $135,000 and $140,000 brackets, which align with the ensuing set of power law bands. Conversely, failing to breach this level might trigger a short-term pullback to the $114,000 and $115,000 zones, consistent with mid-range support. Such a move would still be within the larger, bullish framework outlined in the chart.
Current Bitcoin Price Analysis
As of the latest data, Bitcoin is trading at $118,692, marking an increase of approximately 1.3% over the past 24 hours and nearly 9% over the past week. However, Bitcoin’s Relative Strength Index (RSI) stands at 72, indicating overbought conditions. If the RSI remains elevated, Bitcoin might encounter a phase of consolidation or potentially face a correction.
