Bitcoin batters longs as liquidations copy May 2021 run to $30,000

A person standing in front of a television Bitcoin

Bitcoin batters longs as liquidations copy May 2021 run to $30,000

Longs have been paying the price since early December, data shows, in a sign that accompanied a market reversal several times last year.

Bitcoin (BTC) has dealt significant pain to bulls in recent weeks, and now, fresh data shows just how much.

In a tweet on Jan. 10, on-chain analytics firm Glassnode revealed that those longing BTC had suffered a rerun of last May, when BTC/USD began to fall toward $30,000.

Long traders fail to “catch the knife”

According to Glassnode’s Longs Liquidations Dominance metric, the “majority” of liquidations over the new year involved longs.

This is unsurprising, given Bitcoin’s overall trajectory since late November, but the extent of losses puts the past few weeks on par with May in terms of longs vs. shorts.

“Bitcoin long liquidation dominance has hit 69%, the highest level since the May 2021 deleveraging event,” researchers commented.

Such occurrences tend to be followed by a price and sentiment recovery, but current lows are poignant, as the same price level one year ago was accompanied by the opposite phenomenon — 93/100 or “extreme greed.”

Rate article
( No ratings yet )