Bitcoin and altcoin market long positions "Get Liquidated", margin traders liquidate over 700 million USD.

The cryptocurrency market has experienced a significant dumping in the past 24 hours, resulting in widespread liquidation of leveraged positions. Over $737 million in positions were wiped out, with 85.3% being long positions, highlighting the market's excessive bullish positions. Altcoins such as Ethereum (ETH), Ripple (XRP), and Solana (SOL) have seen pullbacks, while meme coins have fallen even more. Market participants are currently following key support levels to assess whether this is merely a brief fluctuation or the beginning of a broader pullback.

Over 240,000 traders have been liquidated, with positions worth over $700 million

Midweek, the cryptocurrency market experienced a significant pullback, with Ether, Ripple, and other altcoins plummeting on Wednesday (July 23).

According to the CoinGlass liquidation map, a total of 243,970 traders were liquidated in the past 24 hours, with a total liquidation value exceeding 700 million USD. Notably, 85.3% of the positions were long positions, indicating an excessive bullish sentiment. The largest single liquidation occurred on Binance, where a BTC/USD position was liquidated, valued at 2.96 million USD.

The report explains that the decline in crypto assets prices may result from retail traders or large wallet investors taking profits in anticipation of the upcoming altcoin season, as well as capital rotation or positioning.

(Source: CoinGlass)

Traders focus on details

Despite the decline in prices of major alts and popular meme coins on Wednesday, the largest crypto assets by market capitalization are still consolidating.

After reaching an all-time high of $123,218 on July 14, the price of Bitcoin has been fluctuating between $116,000 and $120,000. On Wednesday, the price of Bitcoin slightly retreated from the upper consolidation range of $120,000, closing at $118,755. As of Thursday when this article was written, the price of Bitcoin has slightly rebounded, currently trading at around $119,200.

Traders should closely monitor the aforementioned consolidation levels of Bitcoin to determine whether BTC will stabilize or enter a deeper adjustment phase, which will affect the prices of other Crypto Assets.

If BTC rises daily and closes above the upper limit of the consolidation range at $120,000, it may continue its bullish trend and reach a historic high of $123,218, while alts and Crypto Assets may also follow its rise.

On the contrary, if BTC falls below the lower consolidation boundary of $116,000 daily, it may continue its downtrend, retesting the 50-day Exponential Moving Average (EMA) at $111,292, which could lead to alts entering a deeper correction phase.

In addition, CryptoQuant's estimated leverage ratio (ELR) for BTC was 0.263 on Thursday, indicating a moderate leverage ratio with no excessive exposure.

(Source: Trading View)