BitMEX’s $52 million Bitcoin shorts liquidation spooks traders
|- Bitcoin defied the odds posting an unexpected green candle from a low around $10,500 to a high above $10,600.
- The massive leap has made it difficult for traders to change their positions.
- The majority of traders find it difficult trade due to the unpredictability of Bitcoin’s trend.
BitMEX is known for the gigantic candlesticks in the cryptocurrency market. Without a second notice, traders woke up to a massive liquidation on the platform known for margin trading in the industry. The $52 million liquidations followed an elongated engulfing candle which appeared to have come from nowhere.
Traders found the colossal liquidation to be a surprise because the entire trading was more or less calm. Bitcoin defied the odds posting an unexpected green candle from a low around $10,500 to a high above $10,600.
Read also: Bitcoin market update: BTC/USD struggling to hold above the 50% Fibonacci Level
The massive leap has made it difficult for traders to change their positions. Besides, some traders and analyst were envisioning $8,900-9,100 as a possible ‘buy zone’ for the most popular crypto. Bitcoin ignored the negative technicals to post impressive gains on Monday leading to the liquidation of the shorts.
However, Bitcoin has already started to retreat from the five-day high and is currently holding ground around $10,350. Smart traders can still make money such choppy markets but the majority of traders find it difficult trade due to the unpredictability of Bitcoin’s trend.
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