quick take
Recent data seen by HODL15Capital shows a trend of short selling in the Bitcoin market, with leveraged positions potentially leading to liquidations of around $1 billion between $52,400 and $53,000. With Bitcoin stabilizing around $52,000, the Binance BTC/USDT pair using the Coinglass liquidation heatmap shows significant leverage above this level.
Over the past week, Bitcoin has seen some volatility, maintaining prices above $50,000. There was a surge in liquidations between February 12 and 14, which was linked to Bitcoin’s rise above the $50,000 threshold. These observations suggest that leveraged short sales are prone to liquidation during market rises.
Furthermore, CryptoSlate’s Last week’s analysis pointed to a new rise in derivatives in Bitcoin. The gradual build-up of open interest could potentially worsen Bitcoin’s volatility in the near future, especially if these positions are leveraged. Therefore, the combination of high leverage and derivatives accumulation can have a significant impact on market trends and potentially stimulate additional volatility.
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