Bitcoin’s value returns due to the buyers’ shorting behavior

on Mar 30, 2020
  • Bitcoin price seems to be recovering after a number of short liquidations.
  • Traders are again investing in BTC, ETH, as well as a number of other altcoins as the prices started rising.
  • The coin was falling below its support at $6,100, dropping by nearly 4% within a single hour.

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After days of dropping and large insecurity,
Bitcoin’s price seems to have finally started its recovery. The move due to the
buyers’ shorting behavior, which started after midnight on March 30th. The
coin’s price surged from $5,918 towards $6.300 within only 6 hours.

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At the time of writing, BTC price broke this resistance, currently trading at $6.314. The price is up by 3.08% over the last 24 hours, and the coin’s market cap currently sits at $116.01 billion.

The information published by the data provider Skew indicates that the rising price triggered some short liquidations. BitMEX saw more than $12 million in short liquidations already. The largest one took place at around 05:00 UTC, and it saw the liquidation of $8.5 million.

The new data indicates that the buying
pressure is on a sharp rise. This may mean that the BTC price is finally ready
to leave its new bottom and return to its old heights. Of course, nothing is
certain as of yet, but many consider the liquidations to be a hint of what is
coming next.

The market behavior changed in
less than 24 hours

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The volatility is still very much present in the
crypto market. Only yesterday, March 29th, BTC price saw sell liquidity enter
the market.

Sellers liquidated around $11 million during this time, causing the price to crash to $5,918. This behavior shows that the traders were extremely cautious. They chose to opt-out rather than risk the price drops lower.

However, this behavior set off a lot of strong
liquidation points. The move resulted in the execution of contracts worth $33m
within a single day. With $19 million liquidated in sales, many more joined the
trend, and liquidations continued. But, the rest of the contracts brought $15
million in buy liquidations. This indicated that there were those who started
building the market once more.

For now, it is early to tell where this kind of behavior may lead. However, Bitcoin’s new behavior was also reflected in other coins, with ETH also surging by over 3.2%. The rest of the market is seeing a smaller growth, but it is growing nonetheless. The investors seem to be leaving the stablecoins behind and investing in other cryptos once again.

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