The last few hours in Bitcoin (BTC) have been nothing but a contract killer as the price shot up to above $9,900 before retracing back below $9,600 killing the hopes of bulls in the market.
The sound of Bitcoin at $10,000 is always fascinating to the bulls as the milestone acts as a baptism to targets set at breaking all-time highs. On May 14, 2020 at around 9 AM +GMT, the price of BTC/USD steadily broke into new levels gaining $500 in two hours breaching $9,900 resistance at $9,945.
However, the excitement however was short-lived as the spot bears battled back pushing the price back to current levels of $9,600. The wild 5% jump in an hour on BTC/USD caused serious liquidations on XBT short contracts on BitMEX and Bitfinex before the reversal took out several long contracts too.
Over $12 Million XBT Contracts Liquidated At Bitmex In An Hour
In the dreadful hour on Thursday, investors lost millions to crypto futures exchanges with shorts facing the bulk of the liquidations. In the dreadful hour of price movement to $9,900 before tumbling back to $9,500 closed out a total of $15 million XBT contracts on BitMEX – $12.9 million in shorts and $2 million in longs.
Over the past 24 hours, data from Datamish, a crypto trading data aggregator, shows that close to $35 million dollars in XBT contracts were liquidated as BTCs price danced around the $9,000- $10,000 bound. Of these BitMEX closed about $28.1 million in short contracts and a further $6.8 million in longs.
Bitfinex exchange perpetual contracts settled in BTC also faced mass liquidations in the volatile hour with a total of 92 BTC (~$900,000) in short contracts liquidated in the past day.
Thursday’s liquidations are still relatively low to recent liquidations experienced a day before the halving on Mar 11, whereby liquidations skyrocketed to $278 million, and March 12’s $1.2 billion in liquidations as prices dipped to yearly lows at $3,800 levels.
Currently trading at $9,611, the hourly RSI signals a dip further into the lower $9,000 level as it oscillates from an overbought region and a bearish divergence has formed.