Bitcoin price has been on the up for months, but there is a general consensus among crypto investors that the point of no return has not yet been reached. Therefore there is still enough time to get in position for the next ascent.
Overly eager long traders, however, had their hearts broken when positions worth $ 1.9 billion were liquidated late that evening during a massacre on Valentine’s Day. Here’s what happened and the result of all the carnage.
Valentine’s Day Bitcoin Massacre wipes out $ 2 billion in longs
Over the weekend, Bitcoin price soared to its highest previously traded price, hitting nearly $ 50,000 and making headlines on the internet.
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Traders eager to “long go” ahead of Valentine’s Day weekend hoping to make a big hit with Bitcoin were ultimately in tears when positions worth nearly $ 2 billion were liquidated.
Instead of a bottle of sparkling wine, the price of Bitcoin began to fall. Instead of red roses and scented candles, investors were greeted by a three-hour Japanese candle holder from Hell.
During the three hour candle, the cryptocurrency dropped to over $ 3,000, reducing the price by 6%. Unsurprisingly, given the strength of the uptrend, Bitcoin has already recovered and is targeting $ 50,000 again.
Bitcoin turns violent on Valentine’s Day. | Source: BTCUSD on TradingView.com
Which crypto platform saw the most action when Cupid called out?
Binance traders saw the most promotions, according to data, followed by Huobi Global, ByBit and OKEx.
$ 1.9 billion in positions liquidated due to BTC losses below $ 48,000
– $ 993 million on @Binance
– $ 370 million at @HuobiGlobal
– $ 292 million at @Bybit_Official
– $ 111 million at @OKEx
– $ 53 million at @BitMEX
– $ 49 million at @FTX_Official
– $ 23M on @DeribitExchange
– $ 3M on @Bitfinex pic.twitter.com/3ubwaXrRK0
– CryptoRank platform (@CryptoRank_io) February 15, 2021
Interestingly, BitMEX, which used to be the group’s biggest heartbreaker, ranks barely when compared to other platforms, showing that it has fallen out of favor.
No wonder Bitfinex is at the bottom of the list. The platform keeps leverage at a lower level than the rest of the market, so liquidation on the exchange is far less likely.
Related reading | Stallcoins act as “rocket fuel” and propel Bitcoin to another ATH
Given the themes surrounding Valentine’s Day, it shouldn’t be too surprising that bears came up and the day turned red in the end. However, Bitcoin has already recovered and is ready for another round.
The bull market has only recently started so a high after past cycles may be a long way off. Trajectories suggest that the leading cryptocurrency by market cap will hit prices of $ 325,000 per BTC before all is said and done.
Investors who can hold out the occasional dump like this Valentine’s Day could end up making big bucks.
Featured image from deposit photos, charts from TradingView.com
