Yesterday April 15 Bitcoin traded around $6,700 no one could expect the cryptocurrency to break through to the $7,000 level. Bitcoin which currently trades at $7,021.73 increased by more than $500 in the past 24 hours alone. The cryptocurrency rose from $6,650 to $7,145 in a matter of one and a half hours.
Liquidation on the Rampage
The positive price movement caused a massive liquidation within the bitcoin futures market valued at over $23 million on the BitMEX exchange alone. Furthermore, more than $10 million of the $23 million was sold out within just an hour of price shooting up. Skew, a cryptocurrency research firm indicated that the remaining $13 million got sold out within the next 30 minutes after the first batch of the liquidation.
The total liquidation on the market within just 1.5 hours exceeded the three-day hourly liquidation average of about $1.6 million. In financial trades sell orders are posted when the price moves against long positions and exceeds a predetermined limit. On the other hand, buy orders are automatically placed whenever prices move against short positions.
The latest massive liquidation in the Bitcoin markets indicates that both long and short positions were liquidated. However, data shows that over 93 percent of the total sum of $23 million was liquidated while on short positions. This indicates that more leverage was available on the downward side of the market.
Bitcoin remained within the $6,500 price range for days after a series of attempts to breach the $7,000 price ceiling were unsuccessful. Major cryptocurrency analysts termed the market to be following a bearish trend. It should be noted however that this kind of sudden price rally always unwinds long or short positions. Once this repeats itself prices could shift downward or upwards in a rather fast manner.
Effects on the Other Cryptocurrencies
No price movement of Bitcoin can go without a response from the major cryptocurrencies like Ethereum, Bitcoin Cash, Bitcoin SV, and XRP. The latest price movement of Bitcoin caused all these four cryptocurrencies to increase in margins ranging from 2-8 percent. Since Bitcoin just brushed the $7,000 price range the market is watching hoping for consolidation at the level to push prices further up.
Ethereum recorded a significant price gain of about 8.14% following Bitcoin’s positive price movements. The cryptocurrency which now trades at $168.79 has a total market cap valued at $18.66 Billion. Current price movements are still indicating some positive moves showing further signs of rallying above the current levels.
Meanwhile, Ripple’s XRP has increased by the biggest percentages in several weeks. After a 2.96 percent increase, the cryptocurrency now exchanges for $0.189 in most of the major cryptocurrency exchanges across the globe. Price trends are similar to that of Ethereum and all tethered to Bitcoin.
Bitcoin Cash gained some 3.69 percent within the last 24 hours pushing the cryptocurrencies price to $228.93. The total market cap of Bitcoin cash also increased to $4.21 billion following the recent price rally. Although the charts indicate some sharp declines and temporary gains, we expect the cryptocurrency to maintain that price level at least for some days.
Lastly, Bitcoin SV gained some 2.71 percent pushing its price to $191.74 and the market cap to $3.52 Billion. With a similar price movement to Bitcoin cash Bitcoin, SV also is most likely to preserve its price for some time before we can see a major increase or decrease.