According to CoinGlass, in the past 24 hours, long liquidations of Bitcoin [BTC] have outnumbered short liquidations. According to the data provider, short liquidations had a value of less than $10 million, but lengthy liquidations reached $20 million.
When the price of an asset drops and traders in the futures market are compelled to sell their long holdings, long liquidations often occur more frequently than short liquidations.
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The price of the top cryptocurrency has decreased by almost 1% over the last day, according to statistics from CoinMarketCap, while trading volume has decreased by 18% during the same time frame. This signalled that profit-taking activity was picking up steam even if the coin’s price was still at a multi-month high.
Is Increasing Sell Pressure the Cause of Bitcoin Long Liquidations,Is Increasing Sell Pressure the Cause of Bitcoin Long Liquidations
The majority of holders of BTC print profit.
BTC’s market value to realised value ratio (MVRV), according to data from Santiment, was at its highest point since March 2022 at 68.96% at the time of publication.
The MVRV ratio of an asset measures the difference between the asset’s market value at the time of acquisition and the average cost of each coin or token. An asset is deemed overpriced if its positive MVRV ratio is more than one.
On the other hand, a negative MVRV value indicates that the asset is undervalued and that holders would suffer losses if they sold it at its present price.
BTC’s MVRV ratio, which was above 65%, indicated that, on average, holders would make a 70% profit if they sold at the coin’s current market value of $34,064.
Similarly, on October 23, the coin’s daily profit-to-loss ratio based on the amount of on-chain transactions reached its second-highest point of the year. This reached a maximum of 3.56%, which indicates that 3.56 BTC transactions resulted in profits for each transaction that ended in a loss.
Even while profit-taking has started to pick up steam, there is still a strong positive feeling in the spot market. As of the time of writing, the Directional Movement Index (DMI) indicated that bulls in Bitcoin were leading the daily market.
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This indicator is used to assess a market trend’s strength and direction. The market is stronger for buyers than for sellers, as shown by the positive directional indication (green) at 41.33, which is firmly positioned above the negative directional sign (red) at 5.97.
The coin’s Average Directional Index, which is now in an uptrend at 50.43, indicated that it will be difficult for the bears to retake control of the market. Generally speaking, a trend that is strengthening is indicated by an ADX number greater than 25.
Is Increasing Sell Pressure the Cause of Bitcoin Long Liquidations,Is Increasing Sell Pressure the Cause of Bitcoin Long Liquidations,Is Increasing Sell Pressure the Cause of Bitcoin Long Liquidations, Bitcoin Crypto news, Bitcoin News