Bitcoin batters longs as liquidations copy May 2021 run to $30,000

Bitcoin
(BTC)
has
dealt
significant
pain
to
bulls
in
recent
weeks,
and
now,
fresh
data
shows
just
how
much.

In
a
tweet
on
Jan.
10,
on-chain
analytics
firm
Glassnode

revealed

that
those
longing
BTC
had
suffered
a
rerun
of
last
May,
when
BTC/USD
began
to
fall
toward
$30,000.

Long
traders
fail
to
“catch
the
knife”

According
to
Glassnode’s
Longs
Liquidations
Dominance
metric,
the
“majority”
of
liquidations
over
the
new
year
involved
longs.

This
is
unsurprising,
given
Bitcoin’s
overall
trajectory
since
late
November,
but
the
extent
of
losses
puts
the
past
few
weeks
on
par
with
May
in
terms
of
longs
vs.
shorts.

“Bitcoin
long
liquidation
dominance
has
hit
69%,
the
highest
level
since
the
May
2021
deleveraging
event,”
researchers
commented.

“This
means
that
the
majority
of
liquidations
in
futures
markets
over
recent
weeks
were
long
traders
attempting
to
catch
the
knife.”


Bitcoin
futures
long
liquidations
dominance
annotated
chart.
Source:
Glassnode/Twitter

Looking
at
the
data,
the
period
from
late
July
through
late
November
saw
the
opposite
trend
form,
with
shorters
becoming
victims
of
an
unexpected
bull
run
multiple
times.

Unusual
lows

While
long
liquidation
spikes
do
not
always
mark
local
price
bottoms,
the
appetite
for
a
turnaround
on
short
timeframes
has
long
been
vocal.



Related: ‘Most
bullish
macro
backdrop
in
75
years’

5
things
to
watch
in
Bitcoin
this
week

Bitcoin,
as
Cointelegraph

reported
,
is
firmly
“oversold”
by
historical
standards
at
current
prices.

“If
we
bounce
here,
I’m
not
convinced
we
won’t
revisit
these
prices,
but
some
short-term
relief
would
be
nice,”
quant
analyst
Benjamin
Cowen

tweeted

Saturday
as
part
of
intraday
observations.

“Daily
RSI
is
also
technically
oversold,
$40k-$42k
is
theoretically
a
support
area
too.”

Cowen
was
commenting
on
the

Crypto
Fear
&
Greed
Index
,
which
hit
rare
lows
of
just
10/100
over
the
weekend,
signifying
“extreme
fear”
among
market
participants.

Such
occurrences
tend
to
be
followed
by
a
price
and
sentiment
recovery,
but
current
lows
are
poignant,
as
the
same
price
level
one
year
ago
was
accompanied
by
the
opposite
phenomenon

93/100
or
“extreme
greed.”

read original article here