- As Bitcoin (ETH) and Ethereum (ETH) fell, cryptocurrency liquidation increased to over $200 million in 24 hours.
- However, analysts are optimistic about BTC price as September looks set to end on a green note.
The new bearish move sent Bitcoin down nearly $64,000, leading to more than $200 million in cryptocurrency liquidation in the cryptocurrency market.
According to data from Coinglass, the cryptocurrency market saw total liquidations increase by 128% in the last 24 hours to over $200 million. This occurred when Bitcoin (BTC) fell 4% on September 30, reaching near $63,100.
24-hour customs clearance
After performing much better than expected in September, surging to $66,000, BTC has retreated sharply to drag most altcoins lower. Following the recent sell-off by the Ethereum Foundation, Ethereum (ETH) also fell below $2,600 and the total long position soared to $164 million.
As of this writing, shorts account for approximately $37 million in 24-hour liquidation.
Cryptocurrency liquidation refers to the process by which a trader’s positions are forced to close when the margin account no longer supports open positions. This happens when a trader suffers significant losses or has insufficient margin to maintain a position.
According to Coinglass data, over 68,900 traders liquidated their positions in the last 24 hours. The largest single order to be liquidated was on cryptocurrency exchange OKX for ETH-USD-SWAP in the amount of $1.92 million.
BTC Bounce: Uptober Is Here
Despite the decline in BTC price, bullishness is likely to strengthen in the coming weeks.
The optimistic mood can be attributed to the fact that September looks set to end with BTC rising by more than 7% in the coming hours. This isn’t entirely new to the market, but it’s meant to prevent a sharp collapse. Nonetheless, analysts are optimistic.
As cryptocurrency analyst Kaleo points out in the X post below, October and November have historically been very positive for Bitcoin. If the trend continues, BTC will likely rebound significantly in the coming months.
Below is a visual representation of Bitcoin’s seasonality over the past 13 years.
October is the second highest month for BTC with positive returns, and on average offers the second highest average rate of change (blue line). The only month higher… pic.twitter.com/RZ9g0VvcH5
— Kaleo (@CryptoKaleo) September 30, 2024
Early Monday, digital asset manager CoinShares released its weekly report. Amid the recent rise in interest rates, cryptocurrency investment products showed an inflow for three consecutive weeks. Bitcoin surpassed $1 billion as Ethereum broke through negative trends for five consecutive weeks.
At the time of writing, the BTC price hovered around $63,405.