During the last two weekend days of the first week of November, the price of Bitcoin (BTC) continued to conquer new highs with the excited sentiment of investors. Traders have seen a clear change in their short-term trading plans. This has caused the Long/Short ratio data as well as the liquidation map to be significantly imbalanced.
In the current situation, the BTC price no longer has any historical resistance. Here are the latest updates from the Bitcoin liquidation map.
Over $380 million liquidated as Bitcoin hits new ATH
According to data from Coinglass, in the past 24 hours, when Bitcoin conquered $79,800, there was over $100 million in liquidations in the Bitcoin market alone, and over $380 million in total market liquidations.
Market liquidation data on 11/10. Source: Coinglass.The heat map shows a predominance of red (meaning the Short side suffered the main losses). Only some Altcoins like GRASS, SWELL reversed and declined after previously surging strongly, causing losses for the Long side.
Bloomberg believes that the rise of Bitcoin and the market today was driven by the support of President-elect Donald Trump for digital assets and the prospect of a Congress with more crypto-friendly lawmakers.
"Trump has promised to have regulations that support Crypto and the victory in the House and Senate makes the passage of crypto bills more likely" - Noelle Acheson, author of the Crypto Is Macro Now newsletter, said.
The Bitcoin liquidation map has become significantly imbalanced in November
Observing the consolidated Bitcoin liquidation map across exchanges, one can quickly notice a significant imbalance between the total accumulated liquidation volume between the Long and Short sides.
This is the accumulated liquidation volume calculated from the open positions on the exchanges. On the left, in red, is the accumulated liquidation volume of the Short side. The liquidation volume of the Short side reaches over $8 billion if Bitcoin experiences a sudden dump below $68,000.
Consolidated Bitcoin liquidation map across exchanges. Source: Coinglass.In contrast, on the right in green, the accumulated liquidation volume is much lower. This imbalance reflects that short-term derivative traders are tending to place more bets and higher leverage on the scenario of Bitcoin price continuing to rise in the short term.
Bitcoin Long/Short Ratio. Source: Coinglass.Additionally, the Bitcoin Long/Short Ratio data is at its highest in the past month. Current data shows that over 53% of taker volume is buying, while 46.8% of taker volume is selling. The total volume of open Bitcoin contracts today has also exceeded $47.7 billion, a record high in Bitcoin price history.
Bitcoin Open Interest. Source: Coinglass.High Open Interest (OI) reflects increased trader exposure to Bitcoin. However, OI increasing too much can sometimes be a warning signal for an impending mass liquidation event.
The data above may not be enough to predict the next Bitcoin price, but it confirms that Bitcoin's volatility is currently very sensitive and the risk is high for large leveraged positions. Additionally, the extent of losses for the Long side will be more significant if Bitcoin fails to maintain its upward momentum in the next trading week.
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