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The Bitcoin (BTC) market has seen a lot of liquidations recently, and bullish traders have been hit the hardest. CoinGlass says that over $3 million worth of long positions were liquidated in just one hour, while short liquidations were only $51,000. This huge 7,023% imbalance shows that the market is bearish.
The price of Bitcoin fell 0.6% over the same period, contributing to the wave of liquidations. This decline follows a 3.7% decline since the start of the week, making things even more difficult for bullish traders.
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As is often the case, those who were late to the action or did not manage their risk effectively have had to pay a heavy price. The large liquidations make us wonder if the market is just going through a normal correction or if this is the end of Bitcoin’s recent rally.
One thing is for sure: despite recent volatility, Bitcoin is still a big deal for investors and traders. Financial markets continue to pay attention to this cryptocurrency, so it will likely remain a volatile asset.
There are rewards and risks for those who want to get in on the action. While some may be less than enthusiastic about the recent liquidations, others may see it as an opportunity to buy Bitcoin at a potentially discounted price.
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It is important to note that leveraged trading carries significant risks, so traders should exercise caution and consider their risk appetite before entering into such positions.
