The massive worth of shorts liquidated on BitMEX and Huobi as Bitcoin price spikes over $ 8.000

January 11, 2020, opened a new wave of optimism as the price of Bitcoin rose above $ 8,000. The market-leading cryptocurrency has witnessed a sudden increase of over 3%, caused a massive liquidation of short positions on Bitcoin margin trading exchange BitMEX and Huobi.

Massive Bitcoin shorts liquidated on BitMEX and Huobi above $ 8,000

Not long ago, the price of Bitcoin soared to 3%, reaching about $ 8,136. This is the highest level in recent days and has sparked a fresh wave of optimism across the entire cryptocurrency market. Naturally, this move also motivates some large-cap altcoins such as ETH, XRP, Bitcoin Cash, Litecoin, and BNB. Most notably, Bitcoin SV has increased by about 7% over the same period.


Source: Coin360

After the price of Bitcoin increased by $ 500, it seems the bears are liquidating losses at the moment. An unexpected move at such velocity in any direction is likely to cause the liquidation of so many open positions. In this case, the short positions at the BitMEX Bitcoin margin trading platform were wiped out. According to datamish, about $ 23 million of short positions were liquidated on BitMEX. Later, Huobi also reported a long list of short liquidation orders since the Bitcoin price surged above $ 8,000.

The Open Interest on BitMEX is keen, while interest on Bitcoin has dropped from a low on January 9. Moreover, traders on Okex and Huobi also reduced their long-term interests. The ratio of long/short on Okex is 1.19. While on Huobi, about 58% of traders are inclined to long positions, the overall position is balanced by about 50%.

However, we should not expect too much because BTC still has resistance above. If Bitcoin defends $ 7,700, then the price will likely surpass $ 8,500. Moreover, BTC price has risen on the descending channel once again, indicating a bullish signal. The 200-day EMA at $ 8,150 is acting as the immediate resistance.

Will Bitcoin market trends change?

Almost everyone thinks that BTC’s price will increase if the current price action is maintained. Sawcruhteez analyst tweeted on-chain analysis, and the LucidSAR index is growing weekly.

It is possible that BTC started another parabolic move when its transactions exceeded supply and demand within the $ 7,000 range. According to Will Woo, this range also marks the lowest profitable area for miners.

However, in the past, the trend of substantial price increases on one side was often erased by whales. Therefore, when the TA signal is long, traders must find a way to counter large-volume trading actions in the short term.

Margin trading involves a significant amount of risk, and although it may help you to increase profits, it should be used very carefully.

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