Crypto Liquidations Top $494M as Altcoins Gain Bullish Momentum
As Bitcoin (BTC) closes its third consecutive week in the price discovery phase, the altcoin space has gained significant bullish sentiment. The altcoin market has seen significant gains over the past week, led by Stellar Lumens (XLM), Decentraland (MANA), and The Sandbox (SAND), among others.
As a result, the cryptocurrency market has seen a significant increase in FOMO traders looking to take advantage of the ongoing bullish trend.
Mass cryptocurrency liquidation
As cash inflows into the cryptocurrency industry continue to increase compared to previous quarters, overall volatility remains relatively high. According to market data from Coinglass, trading volume in the leveraged market exceeded $494 million in the past 24 hours.
Most liquidated trades involved long traders, amounting to more than $366 million
While Bitcoin and Ethereum led cryptocurrency liquidations over the past 24 hours, the altcoin space saw a significant increase in rekt traders. For example, in the past 24 hours, the total liquidations for Dogecoin (DOGE), XLM, and XRP were $34 million, $18 million, and $30 million respectively.
What’s next?
With Bitcoin price approaching the important psychological milestone of around $100,000, the altcoin industry is expected to rise significantly in the future. Additionally, Bitcoin’s dominance on the weekly timeframe has formed a potential reversal pattern after rallying back to major resistance around 61%.
On-chain data shows that whale traders have been actively accumulating more altcoins in anticipation of an impending parabolic rally in the near term. As a result, most altcoins, led by Ethereum (ETH), have emerged from a months-long bearish consolidation, gearing up for the much-anticipated altcoin season that will likely peak in the first half of 2025.
