Bitcoin Rally Above $20,000 Triggers Over $800,000,000 In Liquidations – Analysts Outline What’s Next For BTC
Nearly 120,000 crypto traders have their positions wiped out in the last 24 hours as Bitcoin (BTC) launches an abrupt rally above $20,000.
Data from derivatives analytics platform Coinglass reveals that on October 25, long and short positions worth $806.39 million were liquidated as the rest of the crypto markets staged a sudden rally led by Bitcoin.
Traders who bet on the crypto markets to sustain its downtrend were blindsided as they suffered the full force of the rally. Coinglass shows that more than $704.75 million in short positions were wiped out on the same day.
Meanwhile, crypto traders who mistimed the rally also succumbed to the return of volatility. The analytics platform reveals that long positions worth over $101.39 million were withdrawn on October 25 as well.
With Bitcoin trading back above $20,000, closely followed crypto strategist Capo is warning his 561,900 Twitter followers that the recent rally is likely a setup for a massive bull trap.
According to Capo, he sees Bitcoin lighting up another leg before catching BTC bulls and correcting all the way down to its bottom target of $14,000.
“The fact that this retracement is happening before you take the last high is a good sign. In my opinion, we will see the last push up to $21,000 this week. Timings are October 27 and November 2 (interests). Potential bottom around mid-November.”
Another cryptoanalyst Smart Contractor says that before further BTC rally can take place, the king crypt must first eliminate its immediate resistance.
“And we’re back over $20,000. Nice to see us out of that smaller range, but unfortunately we’re still in a much larger range.
Need to clear $20,500 now, which is likely to be a challenge as well.”
At the time of writing, Bitcoin is changing hands for $20,117, up almost 4% on the day.
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Featured image: Shutterstock/Bisams
