{"id":156506,"date":"2021-01-17T13:13:01","date_gmt":"2021-01-17T10:13:01","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/500m-in-crypto-futures-liquidated-as-bitcoin-dips-below-34k-what-happens-next\/"},"modified":"2021-01-17T13:13:01","modified_gmt":"2021-01-17T10:13:01","slug":"500m-in-crypto-futures-liquidated-as-bitcoin-dips-below-34k-what-happens-next","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/500m-in-crypto-futures-liquidated-as-bitcoin-dips-below-34k-what-happens-next\/","title":{"rendered":"# $500M in crypto futures liquidated as Bitcoin dips below $34K: What happens next?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3eaef79b459\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3eaef79b459\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/500m-in-crypto-futures-liquidated-as-bitcoin-dips-below-34k-what-happens-next\/#Why_were_so_many_positions_liquidated\" >Why were so many positions liquidated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/500m-in-crypto-futures-liquidated-as-bitcoin-dips-below-34k-what-happens-next\/#Is_the_Bitcoin_bottom_near\" >Is the Bitcoin bottom near?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># $500M in crypto futures liquidated as Bitcoin dips below $34K: What h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens next?  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Roughly $500 million worth of cryptocurrency futures positions were liquidated in the past 24 hours. The mass liquidation of positions happened before the price of Bitcoin (BTC) dipped below $34,000 on Jan. 17.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/c2a17e22-5a55-4838-972d-6240ba9f43d9.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin total liquidations. Source: Bybt.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Why_were_so_many_positions_liquidated\"><\/span>Why were so many positions liquidated?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Overnight, the price of Bitcoin rose by 6.7% from $35,500 to nearly $38,000. Meanwhile, the futures funding rate sharply increased, indicating an overleveraged market.<\/p>\n<p>Across major exchanges, the funding rate of the Bitcoin perpetual swap futures contract surged to around 0.07%. <\/p>\n<p>Considering that the average funding rate typically hovers at around 0.01%, the futures market was overcrowded on the way up towards $38,000.<\/p>\n<p>As such, Bitcoin price began to drop when several large sell orders hit the market at just above $38,000.\u00a0 The overheated futures market further intensified the correction.<\/p>\n<p>Overall, $500 million in liquidation is not a large figure compared to the past week, for example, when Bitcoin saw $1 billion in futures contracts liquidated on peak days.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_the_Bitcoin_bottom_near\"><\/span>Is the Bitcoin bottom near?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>But the drop has not led the futures market\u2019s open interest to decline, causing concerns for a bigger pullback. There are still a large number of traders betting on Bitcoin in the futures market, which opens up the possibility of another long squeeze.<\/p>\n<p>A pseudonymous trader known as \u201cSalsa Tekila\u201d said that if Bitcoin falls below $30,000, it would enter \u201cbear market territory.\u201d Hence, in the near term, it is crucial for BTC to maintain $30,000 as a macro support area. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SalsaTekila\/status\/1350557251677925379\">said<\/a>:<\/p>\n<blockquote><p>\u201cIf we go below 30k it&#8217;s bear market territory. We&#8217;d have enough underwater bagholders to keep us down for a long while. Until then, could go either way I reckon. If reclaim and hold above 40k, I think 50-60k vicinity plausible. Me thinking $BTC is topped is a bias, not a trade.\u201d<\/p><\/blockquote>\n<p>Additionally, according to CryptoQuant CEO Ki Young Ju, the open interest in the futures market is still skyrocketing. All the while, the on-chain signals that indicated buyer demand have stagnated in the past few days.<\/p>\n<p>Based on the combination of the overcrowded derivatives market and the lack of buy signals, Ki wrote that the market is uncertain and that it may retest $30,000 again. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1350705898189045760?s=20\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cPeople trade $BTC with low leverage, open interest is skyrocketing, and the long-short ratio looks neutral. Strong on-chain buying signals that have driven this bull market hasn&#8217;t come up so far. $BTC might retest 30k, so I don&#8217;t have any position now in this uncertain market.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/7ad990e2-bc2f-4173-b314-01c95b044110.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin estimated leverage on exchanges. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<p>As Cointelegraph previously reported, traders on Binance, the largest futures exchange by open interest, have started to use lower leverage in the past week. This is indicative of a heightened level of fear in the market and the lack of certainty in the short-term price trend of BTC.<\/p>\n<p>On the other hand, some traders remain optimistic in the medium term, explaining that the current pullback from $40,000-levels was not only expected but also much-needed for the rally not to overheat.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/500m-in-crypto-futures-liquidated-as-bitcoin-dips-below-34k-what-happens-next\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# $500M in crypto futures liquidated as Bitcoin dips below $34K: What happens next? &#8221; Roughly $500 million worth of cryptocurrency futures positions were liquidated in the past 24 hours. The mass liquidation of positions happened before the price of Bitcoin (BTC) dipped below $34,000 on Jan. 17. Bitcoin total liquidations. Source: Bybt.com Why were&#8230;<\/p>\n","protected":false},"author":1,"featured_media":156507,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/d0e1562a-22e8-46c9-83a1-8d777acc16ae.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,74937,74939,73785],"class_list":["post-156506","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-price","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/156506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=156506"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/156506\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/156507"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=156506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=156506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=156506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}