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2025-05-11 12:00:21

Are Bitcoin Bears Losing Out? $31 Million Wiped Out In BTC Shorts Liquidation

The Bitcoin price couldn’t sustain the bullish momentum after its ascent to the current all-time-high price of $108,786 in January, leading to a crash to around $74,000 in the following months. However, the premier cryptocurrency appears to have roared back to life. Even as the Bitcoin price sits comfortably above the important six-figure threshold, an important question sticks around — is the bullish run truly back on? Recent on-chain analysis suggests that the market leader might be preparing to resume its bull run. Binance Witnesses Largest Shorts Liquidation Since April In a Quicktake post on CryptoQuant, a pseudonymous on-chain analyst, Darkfost, revealed that a large number of short positions were opened on Binance as Bitcoin dropped from its current all-time high price. According to the crypto pundit, this part of the derivatives market was a source of significant selling pressure on the price of BTC in the following months. Related Reading: Bitcoin Advanced NVT Sits Above This Critical Threshold — What It Means For Price Action Darkfost went on to explain that as the price of BTC started its recovery, these short positions, expectedly — although slowly, got liquidated, becoming buying pressure for the cryptocurrency. This series of slow liquidations, however, spiked on May 8 to a new single-day high since as far back as March. According to CryptoQuant data, over $31 million in short positions were wiped out on Binance, the world’s largest exchange by trading volume. The chart below is of the on-chain indicator showing the amount of liquidations in USD — the ‘Short Liquidations USD’ metric. Furthermore, Darkfost revealed that the relatively low level of funding rates is around 0.004. This trend suggests the abundant presence of short positions in the market, and also the unwillingness of Binance traders to go long. Darkfost concluded that further liquidations or closures of these short positions could cause Bitcoin’s bullish trend to regain its momentum, thus facilitating further growth of the premier cryptocurrency. The crypto analyst also mentioned the possibility that this potential regain of bullish strength could push the flagship cryptocurrency to break above its previous all-time-high price. Bitcoin Price At A Glance As of this writing, the price of BTC stands at around $104,335, reflecting an over 1% increase in the past day. According to CoinGecko data, the flagship cryptocurrency has grown by nearly 9% in the past seven days. Related Reading: Here Are 5 Reasons Ethereum May Reach $12,000 In 2025 – Analyst Featured image from iStock, chart from TradingView

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