Digital asset prices are gradually recovering after more than a week of bearish sentiment. Despite this surge, crypto liquidations have not stopped. In tandem, crypto prices continue to either consolidate or drop.
Within the last 24 hours, the market has seen 192,960 traders liquidated, with the total liquidations from crypto exchanges hitting $616.40 million.
According to Coinglass data, HTX, formerly Huobi, recorded the largest single liquidation order at $60 million.
Current Crypto Liquidation Outlook
Of all cryptocurrencies, Bitcoin (BTC) is bleeding the most as more than $251 million in the flagship coin was liquidated.
Noteworthy, Bitcoin price was trading at $83,098.07 after gaining 4.96% within the last 24 hours. Details of BTC liquidations suggest that many investors were losing their optimism and confidence in the coin.
Based on this premise, they placed a bet on the coin’s downtrend, but unfortunately, Bitcoin saw a positive trend reversal over the past hour.
While long traders were liquidated at $95.7 million, short traders suffered losses running to the tune of $155 million on BTC alone.
In Ethereum’s case, the long traders were more optimistic in their bet but ended up with liquidations worth $79.87 million.
The total ETH liquidation, including the short trader’s $45.24 million, was $125.11 million.
XRP recorded liquidations valued at $23.76 million, Solana (SOL) at $25.16 million, Dogecoin (DOGE) at $15.84 million, and Cardano (ADA) at $7.7 million, among others.
Bitcoin and Altcoin Performance
Bitcoin’s trading volume is tilting towards the red line, suggesting reduced investor engagement and interest.
This metric stood at $56.1 billion at press time, down by 1.52%. Despite this decline and shortfall in BTC price, this crypto and its network are gradually recovering from the previously misaligned market conditions.
The coin’s price fell below $80,000, jittering several traders. However, analysts voiced their opinions about BTC price dynamics and how future prospects look bright.
The fall to $76,811 and later rebound to $79,500 comes in as a four-month low. Interestingly, Bitcoin ETFs were not spared from the losses, as they saw massive outflows.
Ethereum’s price has also fallen significantly in the past few weeks. On March 11, its price plunged 9% to $1,888, further deepening an ongoing selloff.
This brings its total losses in the last 30 days to around 30% and 50% over the last three months.
Even popular crypto analyst Ali Martinez warned that Ethereum could be breaking below a critical trendline. If played out, he teased this move could trigger a drop as low as $1,250 if selling pressure continues.
Key Trigger for Rebound, the Bitcoin Reserve Bill
Certain events and key market situations might fuel these cryptocurrencies to recover from their current price level fully.
Bitcoin is likely to be positively impacted by the talks and implementation of a Bitcoin reserve bill in the United States and several other regions.
In the meantime, policymakers in the Texas Senate approved a proposal to transfer some public funds to Bitcoin as part of a strategic reserve.
The proposal reached the House and if approved, it would allow the state to accept Bitcoin for taxes, fees, and donations.
This implementation and many others may catalyze the BTC price rally.
