The rapid Bitcoin pricing rally has caught the offsembled merchants, causing large liquidations of short short positions.
The leading cryptocurrency by market value has increased more than 3% to $ 102,500 in the last 24 hours, with prices that exceed $ 104,000 at one point, the highest since January 31. The upward movement occurred when President Donald Trump announced a comprehensive commercial agreement with the United Kingdom and cumulative entries in traded funds (ETFS) of the change of $ 40 billion of $ 40.
The broader market was also recovered, with the total market capitalization of all currencies, excluding BTC by 10% to $ 1.14 billion, the highest since March 6, according to Data Fouuring TradingView.
That has led to substantial liquidations of short short positions, or leverage plays aimed at benefiting from price losses. A position is liquidated or forged when the balance of the merchant’s account falls below the required margin level, often due to adverse prices movements. This leads to the exchange to close the position to avoid more losses automatically.
According to Coinglass, almost $ 400 million were settled in short BTC positions in the last 24 hours, which marked the total of a single higher day since at least November, according to Coinglass. Meanwhile, $ 22 million in long positions were also eliminated.
This significant imbalance indicates that the leverage was strongly inclined to the bearish side, and the rapid settlement of shorts suggests that there could be more upward potential for the market that is coming.
