Less than 24 hours ago, bearish sentiment was starting to return to the market after BTC failed to pass through the psychological resistance point of $10,000. Short positions were also starting to add up. Unfortunately for those traders many of their high-leverage positions got quickly liquidated, as BTC had an explosive surge back to $10,430 after being worth $9,364 less than thirty minutes before that. During a short timespan $58.1 million in short positions got liquidated on BitMex.
Earlier this day, BTC had dropped below $9,300 on all major exchanges and no reversal was expected by the larger crowd. There are no obvious reasons for the price hike in the daily news, but unlike margin traders who were short BTC, holders have a good reason to celebrate nonetheless.
Even more impressive was the bounce back of other coins such as Litecoin (LTC), Bitcoin SV (BSV) and NEO, all of which achieved growth of more than 10%. While BSV is still far from a full recovery following its recent crash down from a $240 valuation, and NEO is still worth less than 10% its all-time-high, for Litecoin this is a continuation of its already successful year price-wise. And while still slightly ahead, coins such as XRP and Ethereum failed to impress, gaining only 1.5% and 4% respectively.
Once again BTC’s failure to break resistance or to hang on to support levels did not yield the short to medium-term results daytraders would expect, raising the question whether margin trading can ever be a good idea in the world of cryptocurrency. Former owners of $58,100,000 learned a painful lesson in just a few minutes on just one of the exchanges that offer margin trading.
As for BTC, its explosive price surge was followed by a slower upward movement for the next three hours, reaching $10,700 for a minute before correcting down $10,540 where it has been staying stable for an hour.