Around half a billion dollars in leveraged positions were liquidated over the past 24 hours, with Bitcoin and Ethereum accounting for the majority of the liquidations. With the long and short positions liquidation nearly equaling out, there is no clear direction of the next market move.
With Uptober, the month which is historically considered a bullish month, in play, more than $405 million was liquidated in the last 24 hours, with $229.58 million from shorts and $176.10 million from longs.
Bitcoin and Ethereum traders liquidated
When breaking down liquidations by cryptocurrency, Bitcoin traders were the most affected. About $65 million worth of Bitcoin positions were wiped out, with $48 million in long positions and over $16 million in short positions accounting for the total. Ethereum traders were the second most affected, with nearly $50 million in positions liquidated. Around $32 million in long positions were wiped out, while roughly $17.5 million in short positions were also liquidated.
When closely observing the liquidation levels, both short and long have been gradually reducing. This reduction is a typical sign that leverage is cooling and traders are not taking big risks at the current stage of the market. Moreover, this indicates that the market is consolidating or in a neutral state. The market typically reaches this stage when traders are waiting for a clear direction for the price to move. So, how long will it take for the market to show clear directions?
Market sentiment is neutral
Well, it’s not going to take long. According to the Fear and Greed Index, which gauges the sentiment of the traders, it is in the neutral zone, reading a value of 59.
Although the indicator signals neutral conditions, 59 is the threshold of the neutral zone. If the Fear and Greed Index moves slightly towards the right, then it means the market will fall into the greed zone, where traders will all of a sudden go into a buying frenzy to make the most of what Uptober would offer.
