Bitcoin Bears Feel the Pain as BTC Moves Towards $40k
As the price of Bitcoin continues to rise, bearish traders are feeling the heat. In addition, whales have started showing interest in BTC as well.
Bitcoin [BTC] has seen a massive surge in interest over the last few weeks. However, many traders were skeptical about this growth, causing them to take short positions.
Taking short positions turned out to be a bad idea as Bitcoin recently experienced a notable surge, approaching the $40,000 mark. Coinglass reported that within the last 24 hours, the entire network witnessed liquidations totaling $133 million.
This amount includes $23.6283 million from long positions and $109 million from short positions. It is worth noting that the largest single liquidation order occurred on OKX-BTC-USDT-SWAP, amounting to $1.9607 million.
The liquidation of positions in the last 24 hours, totaling $133 million, could impact Bitcoin in several ways. On the positive side, it may indicate increased trading activity and market participation, potentially leading to higher liquidity and smoother price movements. However, such significant liquidations might also suggest increased volatility and abrupt market shifts, potentially causing losses for traders and impacting market sentiment.
Whales Make Big Moves
Despite the skepticism from some traders, whales continue to show interest in BTC. On December 1st, a large investor made a significant purchase through market orders.
This whale activity in Bitcoin could impact various areas. Firstly, a large purchase could drive up the price of Bitcoin due to increased demand, creating positive sentiment among other investors and attracting more buyers. However, if the whale decides to sell later, it could result in a rapid price decline, causing fear, uncertainty, and potential losses across the board.
Thus, the market will closely monitor the whale’s moves, which could influence the trading strategies and decisions of smaller investors.
At press time, BTC was trading at $38,777.65, with a price increase of 1.56% in the last 23 hours. Along with the surge in price, the number of addresses holding Bitcoin has also seen an uptick.