Over-optimistic bitcoin (BTC) traders have once again been caught by a swift reversal during a bullish phase with more than $550 million in liquidations over the past 24 hours.
After stopping shy of the $20,000 mark, the bitcoin price is currently on the downtrend, almost slipping below $18,000.
Over 81,000 Traders Liquidated as Bitcoin Price Sheds $1.6K
According to data from crypto derivatives data aggregator bybt, total bitcoin liquidations in the last 24 hours stand at over 30,000 BTC. This figure amounts to roughly $550 million.
As bitcoin equaled its all-time high (ATH) on Monday, Nov. 30, profit-taking from traders likely triggered a wall of sell orders. Thus, over-leveraged longs looking to ride Monday’s bullish momentum appear to have been caught unawares again.
Bybt data shows that about 81,500 traders were liquidated in the last 24 hours. The largest single liquidation occurred on the Huobi platform with a trader losing over $6 million.
Data from crypto derivatives analytics provider Coinalyze also shows a significant decline in aggregated open interest (OI) across both crypto and US dollar-denominated contracts.
A reduction in OI points to funds flowing out of the futures market, reinforcing the notion that retail FOMO is ebbing slightly.
On Thanksgiving, over $1.9 billion was also liquidated from the crypto markets as the bitcoin price dipped 11%. The total market capitalization also shed more than $70 billion.
Price Drops Normal in a BTC Bull Market
Historical data points to previous bullish bitcoin advances dotted with between 20-30% price pullbacks. Thus, the current situation is in keeping with the established trend.
Bitcoin setting ascending local price tops in quick succession also reinforces the bullish expectation for the largest crypto by market capitalization. Indeed, November saw Bitcoin’s largest monthly close in US dollar terms, clearing $6,600 within the period.
However, the accelerated nature of the price increase in the last few weeks also offers the likelihood of a steep correction. Any significant interruption of the current bullish streak could see the BTC price reverting to support somewhere in the $13,000 to $14,000 price bands.
Before this current run, the $13,800 proved a multi-year resistance for Bitcoin and is likely the best candidate for a support level if BTC tanks.
Bitcoin proponents will be counting on the influx of institutional money flowing into the space to sustain the current bull market. As previously reported by BeInCrypto, Grayscale Investments recently added 7,300 BTC to its Bitcoin holdings.