Bitcoin liquidations have reached significant levels briefly hitting close to $130 million as the king coin wraps up the second quarter on a strong note.
The figure has retraced back to $114 million in the past 24 hours, data from coinglass showed. The largest single liquidation order occurred on OKX – BTC-USD-SWAP value of $2.00 million.
A few days ago, liquidations touched $260 million after the US Federal Reserve Chairman announced yet another interest rate hike.
For those new, liquidations on the crypto market are triggered by the closure of traders’ positions owing to insufficient margin to cover an ongoing loss. It happens due to traders’ failure to satisfy the margin requirement for their leveraged position.
A surge in liquidations might cause volatility since many positions are closed and assets are sold off. This may have a cascading effect, resulting in additional liquidations and escalating price changes.
As reported by TronWeekly, BTC overcome short bursts of volatility to surge by an impressive 75% in the current quarter and surpassed the $29k level at one time.
The dominant crypto outperformed its peers, including its rival ether’s 50% rise. It also fared better than gold and the Nasdaq 100, which have risen by 15% and 9%, respectively, over the same time span.
Bitcoin Will Reach $30K On 30th April
According to a recent report by a leading on-chain platform, if Bitcoin can go past the $28,600 resistance level, it is predicted to rise toward the range of $29,000 to $32,000. BTC, however, is expected to fall to $26,000 or perhaps lower if it breaches the $27,000 support level.
Nevertheless, investors are closely monitoring Bitcoin’s price performance, due to the possibility of a longer bullish run if the local high is broken.
It is noteworthy that funding rates on centralized exchanges continue to be modest. This means that leverage may not be driving the current rise, which could have both positive and negative implications for the direction of Bitcoin’s price.
That said, an AI-based price prediction system projected that by the end of the next month, Bitcoin will trade above $30,000. PricePredictions, a crypto tracking platform put the price of the top coin at $30,697 on April 30, 2023.
At the time of writing, Bitcoin is trading at $28,578, with a marginal increase over the last 24 hours.