These Bitcoin [BTC] Liquidation statistics can help you in your next trade
Leading crypto Bitcoin [BTC] continued to trade sideways on October 20 after Liz Truss resigned as UK Prime Minister, and Tesla’s confirmation that it did not sell any of its BTC holdings, nor did it buy any additional BTC in Q3.
At press time, the king coin was trading at $19,061.76, per data from CoinMarketCap. After registering almost no growth in the last 24 hours, the price had fallen by 0.33% at press time. With $22 billion worth of BTC traded in the last 24 hours, trading volume was also down 5%.
According to data from Coinglass, liquidations in the cryptocurrency market in the last 24 hours totaled $53.87 million, with 29,483 traders liquidated.
BTC liquidations of $10.66 million accounted for 20% of the total sums removed from the market.
Source: Coinglass
Sellers are in control
On a daily chart, the momentum of the BTC distribution increased, leaving sellers in charge of the market. This was confirmed by the EMA (Exponential Moving Average) position.
At the time of writing, the 20 EMA (blue) was below the 50 EMA (yellow) line, indicating ongoing bearish action.
This was also proven by the Directional Movement Index (DMI). DMI agreed with the status of the EMA as sellers’ strength (red) at 20.78 was above the buyers’ (green) at 17.13.
As confirmed by the position of the average directional index (ADX), BTC buyers were overpowered by sellers and the market would disappear in its bearishness in the short term.
Furthermore, BTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) were heading south at the time of writing. Marking their place below their respective neutral regions, the RSI and MFI were at 43.97 and 36.95 respectively at the time of writing.
Source: TradingView
An impending sharp decline?
According to CryptoQuant analyst BinhDang, no data from the chain suggests that the royal coin will experience a sharp price drop. Noting that there have been many “tweets and price chart patterns” comparing the current market to that of 2018 ending “before someone dumped Bitcoin,” BinhDang opined that “there is currently no indication that a similar event will happen .”
According to the analyst,
“At the end of Q3/2018, when BTC’s price started to drop in volatility and move sideways, there was a sudden increase in the number of addresses sent to the spot exchange. The number of addresses skyrocketed, steadily depositing coins to the spot exchange while the market was gloomy. Compared to the current period, except for the peaks on this computer system that have shown sharp price drops, the number of addresses that deposited BTC to the spot exchange is at the lowest level in many years. There are no abnormal signs at this time. Therefore, the fear or expectation of that the Bitcoin price will fall further remains uncertain.”
Source: CryptoQuant
