Daniel Walker
The crypto market witnessed a substantial liquidation event, wiping out nearly $300 million in just one day. According to data from CoinGlass, traders, particularly those holding long positions, suffered significant losses, marking one of the most severe liquidation days of October.
On October 23, traders with long positions faced a total loss of about $194 million, while short sellers saw a smaller impact with nearly $79 million in liquidations. This brought the overall daily liquidation total to $272 million. The last comparable liquidation event occurred on October 3, when a bearish market move led to $556 million in leveraged positions being liquidated.
The recent price volatility has triggered multiple large-scale liquidations in the crypto market as traders speculate on future price trends. Just days ago, Bitcoin fell sharply to $67,000 after peaking at $69,500, the highest level in months. This unexpected dip caught many investors off guard, especially those anticipating a breakthrough above the $70,000 mark, leading to approximately $135 million in liquidated leveraged positions.
The most recent liquidation wave on October 23 saw significant losses across major cryptocurrencies like Bitcoin and Ethereum due to increased market turbulence.
Ethereum traders were particularly hard-hit, with almost $80 million in liquidations over the past 24 hours. Of that, long traders experienced over $61 million in losses, while short sellers had a smaller loss of $16 million.
Bitcoin bulls also faced steep losses, with more than $58 million liquidated in total. Long traders were the most affected, losing over $30 million in a single day, whereas short traders endured about $27 million in liquidations.
Concerns Over Bitcoin’s Price Outlook
With long traders continuing to suffer heavy losses, there is growing concern about Bitcoin’s future price trajectory. Analysts are warning that Bitcoin’s bullish momentum might be losing steam. XBTManager, a prominent industry expert, suggested that Bitcoin needs increased demand on major exchanges like Binance, OKX, KuCoin, Bybit, and Bitget to sustain a move beyond the $70,000 threshold.
He described the current situation as a “resistance phase” for Bitcoin, emphasizing the need for the market to transition into a “decision phase” to continue its upward movement. Despite recent gains, Bitcoin might still face challenges, potentially revisiting the $63,000 to $64,000 range if momentum stalls.
The cryptocurrency market remains on edge as investors weigh the potential for further declines amid ongoing volatility, particularly in leading cryptocurrencies like Bitcoin and Ethereum.
