Why Bitcoin bears are feeling the pain
- As Bitcoin’s price rose, bears felt the heat.
- Whales started to show interest in BTC as well.
Bitcoin [BTC] saw a massive surge in interest over the last few weeks. However, many traders were skeptical about this growth, causing them to take short positions.
Getting liquid
This, however, was a bad idea. Recently. Bitcoin saw a notable surge, nearing the $40,000 mark. According to AMBCrypto’s examination of Coinglass, within the last 24 hours, the entire network witnessed liquidations totaling $133 million.
This sum included $23.6283 million from long positions and $109 million from short positions. It’s worth highlighting that the largest single liquidation order took place 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. Positively, it may indicate increased trading activity and market participation.
This could potentially contribute to higher liquidity, thereby offering smoother price movements.
On the negative side, such significant liquidations might suggest increased volatility and abrupt market shifts. Traders who face liquidation may experience losses, impacting market sentiment.
Whales make big moves
However, whales continued to show interest in BTC. Notably, on the 1st of December, a large investor purchased millions through market orders.
This is pretty rare 😱
A whale bought millions, and millions through market orders on the 1st of December. There are only a few historical examples where #Bitmex whales were as strongly positioned as they are now.
What do they know?🤔 https://t.co/BYvMM794rK pic.twitter.com/kmhZlX6Pqq
— Maartunn (@JA_Maartun) December 2, 2023
The rising whale interest in Bitcoin could impact many areas. First, such a large purchase might drive up the price of Bitcoin due to increased demand. This could create positive sentiment among other investors, attracting more buyers.
However, if the whale decides to sell later, it could lead to a rapid price decline. This may cause major FUD and potential losses across the board.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Thus, the market will be closely watching the whale’s moves, which could influence trading strategies and decisions of smaller investors.
At press time, BTC was trading at $38,777.65, as its price grew by 1.56% in the last 23 hours. Along with the surge in price, the number of addresses holding Bitcoin also saw an uptick.
Source: Santiment
