Why Bitcoin Suddenly Spiked to $10,200, Instantly Liquidating $75M
The price of Bitcoin abruptly surged to $10,200, as it liquidated $75 million worth of short contracts.
The price of Bitcoin (BTC) rose to as high as $10,272 on July 26 in an unexpected weekend rally.
It liquidated $74 million worth of long contracts on BitMEX alone, catching many traders off guard.
There appear to be two main reasons behind the abrupt upsurge of Bitcoin from $9,700 to over $10,200.
They are the liquidation of over-leveraged shorts and traders taking profit from over-extended alternative cryptocurrencies (altcoins).
Profit-taking pattern observed as Bitcoin spikes
When the price started to rally, major altcoins, as well as well-performing DeFi tokens, began to slump.
Ethereum declined from $322 to $311, and DeFi tokens, including Aave and YFI, saw steep rejections.
The simultaneous rejections of major altcoins and the price surge of Bitcoin suggest that traders took profit from recent altcoin rallies.
As traders moved their altcoin gains to Bitcoin, it possibly triggered a BTC uptrend, while altcoins declined.
ETH, as an example, rose from $247 on July 23 to $322 on the day’s peak, recording a 30% gain.
Despite the strong sentiment around altcoins, investors are possibly taking a more cautious approach by hedging their gains.
Massive liquidations of short contracts
When Bitcoin initially broke over $10,000, it triggered over-leveraged short contracts to become liquidated.
When BTC reached $10,200, it caused a cascade of liquidations to occur, totaling $74 million.
Bitcoin has seen many phases when more than $50 million worth of short or long contracts gets liquidated.
But for this to occur within a span of a few hours is less typical.The mass liquidations of long contracts at $10,000 also suggest that the $10,000 to $10,200 remains as a heavy resistance area.
As soon as BTC hit $10,200, the price dropped below $10,000, marking a short-lived rally.
Read the full topic at
https://cointelegraph.com/news/why-bitcoin-suddenly-spiked-to-10-200-liquidating-75m-in-fast-rally
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The price of Bitcoin (BTC) rose to as high as $10,272 on July 26 in an unexpected weekend rally.
It liquidated $74 million worth of long contracts on BitMEX alone, catching many traders off guard.
There appear to be two main reasons behind the abrupt upsurge of Bitcoin from $9,700 to over $10,200.
They are the liquidation of over-leveraged shorts and traders taking profit from over-extended alternative cryptocurrencies (altcoins).
Profit-taking pattern observed as Bitcoin spikes
When the price started to rally, major altcoins, as well as well-performing DeFi tokens, began to slump.
Ethereum declined from $322 to $311, and DeFi tokens, including Aave and YFI, saw steep rejections.
The simultaneous rejections of major altcoins and the price surge of Bitcoin suggest that traders took profit from recent altcoin rallies.
As traders moved their altcoin gains to Bitcoin, it possibly triggered a BTC uptrend, while altcoins declined.
ETH, as an example, rose from $247 on July 23 to $322 on the day’s peak, recording a 30% gain.
Despite the strong sentiment around altcoins, investors are possibly taking a more cautious approach by hedging their gains.
Massive liquidations of short contracts
When Bitcoin initially broke over $10,000, it triggered over-leveraged short contracts to become liquidated.
When BTC reached $10,200, it caused a cascade of liquidations to occur, totaling $74 million.
Bitcoin has seen many phases when more than $50 million worth of short or long contracts gets liquidated.
But for this to occur within a span of a few hours is less typical.The mass liquidations of long contracts at $10,000 also suggest that the $10,000 to $10,200 remains as a heavy resistance area.
As soon as BTC hit $10,200, the price dropped below $10,000, marking a short-lived rally.
Read the full topic at
https://cointelegraph.com/news/why-bitcoin-suddenly-spiked-to-10-200-liquidating-75m-in-fast-rally
Follow me on
Twitter: https://twitter.com/cryptoexpert20
If you wont me to post your cryptocurrency article on my blog From the link
https://www.fiverr.com/cryptoexpert20/post-your-cryptocurrency-article-on-my-blog
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