Crypto market sentiment appears to be turning once again. Although there is still sufficient downside pressure, margin traders who open shorts are more likely to be liquidated at this time. It would be good to see the markets rebound, although it is still too early to draw conclusions.
Weekly liquidations favor long positions
Recent statistics shared by Top 7 ICO confirm that things are getting more and more exciting in the cryptocurrency industry. Specifically, a lot of money was lost to margin trading liquidations this week. Almost $920 million was lost on OKX, Binance, ByBit, FTX, Huobi, CoinEx, BitMEX and Deribit this week. It is interesting to see how longs and shorts match up on these platforms.
Top trades by liquidations in the last 7 days
— TOP 7 ICOs | #StandWithUkraine🇺🇦 (@top7ico) July 6, 2022
First of all, OKX is the exchange with the most margin trading liquidations over the past week. This may seem a bit surprising, although the volume of $386.5 million is rather impressive. That’s way more than Binance’s $272 million, which is respectable. ByBit completes the top three with $117.1 million. Former margin trading giant BitMEX did not make the top five and generated just over $20.5 million, further confirming its fall from grace.
Under current conditions, a weekly volume of less than $1 billion might seem rather low. Markets can turn bearish or bullish at any time, creating huge opportunities for those going long or short. However, this will require good market timing, as losses and gains don’t stay in place for too long these days. This is a tricky narrative to change as macro circumstances do not allow for much optimism.
Additionally, the platforms are seeing an interesting split between long and short liquidations. ByBit, for example, liquidated significantly more shorts this week, a trend that also applies to CoinEx. All other platforms seem to have a relative balance between the two, although margin traders on Binance who went long suffered larger losses compared to shorter ones. Overall, there appears to be a feeling of being long – at the time of writing – although the direction of the market remains uncertain.
Should you get excited?
Last week’s statistics are not necessarily indicative of current sentiment. However, the statistics of CoinGlass confirm that most BTC traders are long, although the difference is minimal. The overall positions range from 50.09% to 52.73% being bullish, with ByBit noting strong bullish momentum on BTC-USD and BTC-USDT. Deribit goes further, with 54.61% of traders having a long position, which is exceptional.
Open interest on margin trading platforms remains virtually unchanged. Binance has over $2 billion in open interest, well ahead of FTX’s $1.16 billion. Bitget is the only other platform close to the $1 billion mark, and Kraken doesn’t even break the $30 million level. Very intriguing rankings, although it is unclear if bitcoin will have a massive breakthrough in the next few days.
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