Short traders betting on a decline in the overall cryptocurrency market have found themselves in a situation where a broad rally over the past 24 hours has seen nearly $200 million in short positions liquidated.
The move came as Bitcoin (BTC) and Ethereum (ETH) broke through key support levels, while major coins like XRP and Solana (SOL) rose as much as 20% and liquidated earlier this week. Short positions exceeding $ 150 million (about 19.6 billion yen) will be liquidated. A similar level of liquidation has not been seen since October last year, according to data from CoinGlass.
Ethereum futures had $110 million in both short and long liquidations, the most of all major cryptocurrencies. Bitcoin futures have liquidated $77 million, with Avalanche (AVAX) and Gala (GALA) each losing $4.5 million after the Jan. 11 volatility. bottom.
Cryptocurrency exchange OKX accounted for the majority of these liquidations with more than $128 million, followed by Binance with $42 million. Data from CoinGecko show that the cryptocurrency market capitalization has increased by around 3.5% over the past 24 hours due to price spikes.
Bitcoin surpassed $18,000 on Jan. 12 after crossing the threshold for the 10th time in 12 days. Ethereum is up 4.5% over the past 24 hours, over $1,400, while Cardano (ADA) briefly rose 5% before falling.
Meanwhile, crypto funds such as QCP Capital see Bitcoin’s strong $18,000 breakthrough as a key indicator of recovery, with the next level at $28,000. “Despite the mini-rally, BTC is still trading on a very tight falling wedge. Above $18,000 is an important breakout to the topside,” the fund said on Telegram last week.
QCP also said that “ETH remains clearly stronger than BTC, but it too is still trading in a pattern.”
In technical analysis, consolidation is when an asset oscillates between well-defined trade-level patterns. Consolidation is commonly interpreted as market indecision and ends when price moves above or below a pattern.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Short Traders Suffer $200M in Losses as Ether, Cardano Lead Crypto Majors’ Gains