$118 Million in 24 Hours: Crypto Bears Getting Destroyed

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The cryptocurrency market has seen $118 million in liquidations in the last day, primarily aimed at bearish traders. Bitcoin and Ethereum were at the forefront, with Bitcoin alone seeing over $68 million in liquidations, according to the provided liquidation heatmap. 

With about 88% of liquidations coming from short traders, the general sentiment of the market points to a massive shakeout of short positions, indicating that bears are under a lot of pressure. The two companies with the highest liquidations, especially in short positions, were Binance and HTX. It is noteworthy that HTX's liquidations, which had a 98% short liquidation rate, were heavily biased toward shorts. This illustrates the market's strong bullish momentum, and it appears that bears were unprepared for the price of Bitcoin to return above $64,000.

BTC/USDT Chart by TradingView

It is clear from examining Bitcoin's recent chart performance that the cryptocurrency has breached significant resistance at $62,000. It is now getting close to $64,500, the next crucial level that has traditionally served as a psychological barrier. Around $68,000 would be the next major target if Bitcoin could maintain this momentum. 

Traders should exercise caution, though, as a pullback could occur if $64,500 is not decisively broken, possibly retesting support at $61,000. Investigating the data further reveals that futures open interest has dropped precipitously, especially on Binance futures, where almost 4,000 BTC in open interest were erased.

This highlights the fact that bearish traders are being squeezed and shows a liquidation of over-leveraged positions. The heatmap also demonstrates that this liquidation event is not unique, as numerous other assets such as SUI and SOL have undergone comparable liquidations.

A healthy shakeout of short positions is reflected in the liquidation sweep, raising the possibility of a further bullish rally. Investors ought to keep an eye on the crucial resistance levels, especially the $64,500 range for Bitcoin. More substantial gains on the cryptocurrency market, with Bitcoin at the forefront, might be possible with a clear break.