Nobody bought the dip below $70,000—the only ones lining up to get liquidated were longs.
Across the market, $1.47 billion was liquidated in 24 hours, wiping out 175,700 traders, with longs accounting for 89.2%. $BTC alone saw $783 million in liquidations, 96.3% of them longs; $ETH saw $260 million liquidated, with longs making up more than 90%. Binance accounted for 36.6% of all liquidations, and one $13.8 million long position was liquidated at $68,986 in the early hours.
The most painful part was the timing: prices bottomed at $67,555. In the four hours after Bitcoin fell below $70,000, more than $600 million was liquidated, nearly 90% of it from longs. The lower prices fell, the more people tried to buy the dip—and each one got liquidated.
My take is that this sell-off is different from the previous ones. The dollar index has climbed above 103, ETF flows have been net negative for consecutive days, and rate-hike expectations are back. Bulls are getting squeezed from both sides by macro factors and leverage. October PPI is due at 21:30 tonight, and trying to catch a rebound before then is like lining up for liquidation. If you’re looking for a turnaround, wait for the liquidation wave to cool or for PPI to come in at a level that eases rate-hike expectations.
Across the market, $1.47 billion was liquidated in 24 hours, wiping out 175,700 traders, with longs accounting for 89.2%. $BTC alone saw $783 million in liquidations, 96.3% of them longs; $ETH saw $260 million liquidated, with longs making up more than 90%. Binance accounted for 36.6% of all liquidations, and one $13.8 million long position was liquidated at $68,986 in the early hours.
The most painful part was the timing: prices bottomed at $67,555. In the four hours after Bitcoin fell below $70,000, more than $600 million was liquidated, nearly 90% of it from longs. The lower prices fell, the more people tried to buy the dip—and each one got liquidated.
My take is that this sell-off is different from the previous ones. The dollar index has climbed above 103, ETF flows have been net negative for consecutive days, and rate-hike expectations are back. Bulls are getting squeezed from both sides by macro factors and leverage. October PPI is due at 21:30 tonight, and trying to catch a rebound before then is like lining up for liquidation. If you’re looking for a turnaround, wait for the liquidation wave to cool or for PPI to come in at a level that eases rate-hike expectations.
