Ethereum

Bitcoin

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 <p class="paragraph">Bitcoin (BTC) experienced a dramatic market shift as its total liquidations surged to $97.06 million, driven by $10.98 million in long positions and a staggering $85.08 million in <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> positions being wiped out.&nbsp;</p>
 <p class="paragraph">The sudden price increase caused over $260 million in market-wide <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> liquidations on May 20, the largest since February 28th. Ethereum (ETH) <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a>s lost over $115 million, followed by Bitcoin <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a>s at just over $97 million, according to data from <em>Coinglass</em>.</p>
 <p class="paragraph">This upheaval occurred as Bitcoin’s price surged around 5% in the past 24 hours, reaching $71,078.15. The cryptocurrency’s 24-hour trading volume also skyrocketed by 138%, valued at $54.065 billion, with a market capitalization of $1.40 trillion.</p>
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 <p class="paragraph">A <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> position in Bitcoin derivatives allows investors to magnify their potential gains from a price decline. However, if the price moves in the opposite direction, those positions risk liquidation.&nbsp;</p>
 <p class="paragraph">The largest cryptocurrency’s price surge resulted in significant losses for short sellers, with $85 million in BTC shorts liquidated in just 24 hours, according to <em>CoinGlass.</em></p>
 <h2 class="wp-block-heading" id="h-expert-insights-and-optimism">Expert insights and optimism</h2>
 <p class="paragraph">Statistician <em>Willy Woo</em> commented that bullish traders were tackling overhead resistance that had been in place for over a month.&nbsp;</p>
 <p class="paragraph">Currently, BTC is trading with the 20-day &nbsp;exponential moving average (20-EMA) at $64,371 and a positive relative strength index (RSI), indicating that an upward breakout is more likely.&nbsp;</p>
 <p class="paragraph">To add to the optimism, analyst <em>ELI5 of TLDR </em>commented that the majority of on-chain indicators point to a nascent bull market, despite some showing topping patterns.</p>
 <p class="paragraph"><em>CoinGlass</em> data indicated $70,600 as the area with the thickest bid liquidity below the spot price at the time of writing.&nbsp;</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="505" src="https://cdn.thebittimes.com/images/2024/05/21/968c2c05f9c1b204695631807ce4fa27.webp" alt="" class="wp-image-177243" srcset="https://cdn.thebittimes.com/images/2024/05/21/968c2c05f9c1b204695631807ce4fa27.webp 1024w, https://cdn.thebittimes.com/images/2024/05/21/968c2c05f9c1b204695631807ce4fa27.webp 300w, https://cdn.thebittimes.com/images/2024/05/21/968c2c05f9c1b204695631807ce4fa27.webp 768w, https://cdn.thebittimes.com/images/2024/05/21/968c2c05f9c1b204695631807ce4fa27.webp 1376w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>BTC Liquidation Heatmap, 24-hour&nbsp; chart. Source: CoinGlass</em>
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 <h2 class="wp-block-heading" id="market-liquidity-and-exchange-reserves">Market liquidity and exchange reserves</h2>
 <p class="paragraph">Adding to the bullish sentiment, exchange BTC reserves have plummeted to a seven-year low, with <em>CryptoQuant</em> data showing only 1,9184,152 BTC available on major trading platforms as of May 20, a significant decrease from the previous year.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="401" src="https://cdn.thebittimes.com/images/2024/05/21/c0403182d36f496e1a10c67d0521bb80.webp" alt="" class="wp-image-177245" srcset="https://cdn.thebittimes.com/images/2024/05/21/c0403182d36f496e1a10c67d0521bb80.webp 1024w, https://cdn.thebittimes.com/images/2024/05/21/c0403182d36f496e1a10c67d0521bb80.webp 300w, https://cdn.thebittimes.com/images/2024/05/21/c0403182d36f496e1a10c67d0521bb80.webp 768w, https://cdn.thebittimes.com/images/2024/05/21/c0403182d36f496e1a10c67d0521bb80.webp 1536w, https://cdn.thebittimes.com/images/2024/05/21/c0403182d36f496e1a10c67d0521bb80.webp 1566w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>Exchange BTC reserves. Source: CryptoQuant</em>
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 <p class="paragraph">This reduction in exchange reserves is considered bullish because it indicates that more investors are moving their Bitcoin off exchanges and into personal wallets.&nbsp;</p>
 <p class="paragraph">This behavior suggests that they are holding onto their Bitcoin for the long term, expecting the price to rise.&nbsp;</p>
 <p class="paragraph">When fewer BTC are available on exchanges, it can lead to reduced selling pressure and increased scarcity, potentially driving up the price.</p>
 <p class="paragraph">Despite the optimistic outlook, investors must remain cautious with Bitcoin trading. This is due to macroeconomic concerns related to the Fed’s interest rates and microeconomic concerns related to Bitcoin miners’ revenue drop, which affects network security.</p>
 <p class="paragraph">While Bitcoin was experiencing notable liquidations, Ethereum also saw significant price action. ETH pumped by 20%, adding to the overall market excitement.&nbsp;</p>
 <p class="paragraph">The movements in both Bitcoin and Ethereum highlight the current volatility in the cryptocurrency market, driven by various factors, including ETF developments and technical market resistance levels.</p>
 <p class="paragraph">Nevertheless, cryptocurrencies are highly volatile, and is hard to forecast further performance.</p>
 <p class="paragraph"><strong><em>Disclaimer: </em></strong><em>The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-short-squeeze-85m-in-btc-shorts-liquidated-in-24-hours-tbt89127.html">https://thebittimes.com/bitcoin-short-squeeze-85m-in-btc-shorts-liquidated-in-24-hours-tbt89127.html</a></p>

Bitcoin short squeeze: $85M in BTC shorts liquidated in 24 hours

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