đš BREAKING: Bitcoin just dropped more than $2,200 in less than 2 hours.
The move triggered a major wave of liquidations, with more than $400 MILLION worth of long positions wiped out.
A lot of traders were positioned for BTC to keep moving higher, but when price started falling, leveraged positions were forced to close adding even more selling pressure to the market.
This is exactly why leverage can be dangerous in crypto. A relatively quick BTC move can turn into a massive liquidation cascade when too many traders are positioned on the same side.
For now, Iâm watching whether Bitcoin can stabilize after this flush or if more downside follows.
High leverage gets punished fast in markets like this. đ
$BTC
The move triggered a major wave of liquidations, with more than $400 MILLION worth of long positions wiped out.
A lot of traders were positioned for BTC to keep moving higher, but when price started falling, leveraged positions were forced to close adding even more selling pressure to the market.
This is exactly why leverage can be dangerous in crypto. A relatively quick BTC move can turn into a massive liquidation cascade when too many traders are positioned on the same side.
For now, Iâm watching whether Bitcoin can stabilize after this flush or if more downside follows.
High leverage gets punished fast in markets like this. đ
$BTC