Wild Bitcoin Price Swings Trigger $150 Million in Liquidations in BTC Futures Market – Here Are the Key Themes Driving the Market Right Now
The Bitcoin (BTC) price swung wildly on Wednesday.
At one point when the world’s largest cryptocurrency by market capitalization hit session highs early in the day at just above $30,000, BTC was up over 6% on the day.
At session lows later in the day in the $27,200s, the BTC price was as much as 3.8% lower.
Bitcoin’s high-to-low swing of over 9% is the largest such (percentage) intra-day trading range since the cryptocurrency bolted nearly 10% higher in one day back on the 17th of March.
In the end, Bitcoin ended the session broadly flat in the mid-$28,500s, where it continues to trade as Asia Pacific trade gets underway.
But market participants were not left unscathed.
According to crypto derivatives analytics website coinglass.com, leveraged Bitcoin future positions worth more than $150 million were liquidated (i.e. stopped out or “rekt”) on Wednesday.
The split between long and short positions being liquidated was relatively even.
Wednesday thus marked the biggest day for liquidations in the Bitcoin futures market for at least three months.
Short-term Bitcoin bulls will take heart from the fact that the cryptocurrency once again found strong support in the low $27,000s in the form of recent lows and its 50-Day Moving Average.
A short-term buy signal monitored by Bloomberg fired off one week ago when Bitcoin was changing hands just under $29,000.
Historically, BTC gains around 7% within the next 10 days following this trading signal.
If history is a good guide, then the Bitcoin price could be set for a swift rally towards $31,000 over the next three days.
Bitcoin’s chances of mounting a sustained recovery back above $30,000 in the coming days and weeks are looking increasingly strong.
That’s because bank crisis fears, which powered
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