Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

14290 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Was It Justin? XPL Soars 200% on Hyperliquid as Whale Wipes Out Order Book

Was It Justin? XPL Soars 200% on Hyperliquid as Whale Wipes Out Order Book

The post Was It Justin? XPL Soars 200% on Hyperliquid as Whale Wipes Out Order Book appeared on BitcoinEthereumNews.com. A large wallet rocked the Hyperliquid market when it deposited 16 million USDC and opened millions of XPL long positions in just a few minutes. This move instantly “swept clean” the order book, liquidating all short positions and driving XPL’s price to soar over 200% from the $0.58 range to a peak of $1.80. Liquidity Shock According to data from Lookonchain, this wallet partially closed its position within less than a minute and secured a $16 million profit. Some traders speculate that this wallet belongs to Justin Sun, the mastermind behind the Tron (TRX) network. “Justin Sun just locked in $16M profit in under 60 seconds. He longed millions of $XPL, nuking the entire order book and wiping traders instantly. Sent $XPL soaring to $1.80 (+200% in 2 minutes). And he’s STILL holding 15.2M $XPL ($10.2M) long. Easily one of the craziest liquidation cascades ever seen on Hyperliquid,” an X user commented. XPL price volatility. Source: MLM on X Not only did whales benefit, but Hyperliquid’s HLP vault also earned approximately $47,000 from this volatility. Despite this, the vault suffered a nearly $12 million loss in a similar event. This reflects the dual-risk nature of liquidity providers: they can earn fees while facing significant losses when volatility strikes. Before XPL, Hyperliquid witnessed a similar event with the JELLY token. At that time, unusual price swings caused the HLP vault to incur a nearly $12 million loss. This loss occurred because the vault was caught up in liquidity provision amid an order book “wipeout.” HLPs earned approximately $47,000 during XPL’s volatility. Source: Hyperliquid HyperLiquid responded to the JELLY squeeze by refunding affected traders and implementing stricter security measures to prevent future incidents. The commonality lies in both cases originating from a mighty whale move in a thinly liquidated market, triggering widespread…

Author: BitcoinEthereumNews
Crypto Market Sees About $700 Million Wipeout as Bitcoin Price Falls to $110,000

Crypto Market Sees About $700 Million Wipeout as Bitcoin Price Falls to $110,000

In what feels like the longest day in Bitcoin history since the token started making significant momentum, the Bitcoin price dropped by $4,000. According to the details shared by on-chain analysts, a whale that holds 152,874 sold about 24,000 Bitcoin of their total Bitcoin balance. When the transaction was made, the sell-off was worth about […]

Author: Tronweekly
James Wynn Liquidated on 10x DOGE bet, as he prepares to ‘go max long’

James Wynn Liquidated on 10x DOGE bet, as he prepares to ‘go max long’

The post James Wynn Liquidated on 10x DOGE bet, as he prepares to ‘go max long’ appeared on BitcoinEthereumNews.com. Crypto millionaire James Wynn said the August market downturn was ending, even after his latest memecoin liquidation by an alleged market maker “cabal.” Wynn was liquidated on his recent 10x leveraged long position that was betting on a Dogecoin (DOGE) price appreciation, losing $22,627, according to blockchain data platform Onchain Lens’ Monday X post. That was a relatively small loss for Wynn, compared to his leveraged $100 million position that was liquidated on May 30, when BTC briefly dipped below a 10-day low of $105,000. Wynn blamed his recent liquidation on cryptocurrency market makers who “wiped out”  the leveraged long positions, which he said may be a signal for the end of the market correction.  Source: Onchain Lens “Timeline bearish and calling for the bear market. Time to go max long,” the millionaire leverage trader wrote in a Tuesday X post. Leveraged positions use borrowed money to increase the size of an investment, which can boost the size of both gains and losses, making leveraged trading riskier than spot trading. Related: Ether trader nearly wiped out after epic run from $125K to $43M Still, Wynn has realized a $21.7 million total loss on a single account since March 19, when he started trading via wallet 0x5078 on the decentralized exchange Hyperliquid, data from Hyperdash shows. Wynn-related wallet ‘0x5078.’ Source: Hyperdash  The latest liquidation came less than two months after Wynn lost almost $25 million on June 5, after being liquidated on a $100 million Bitcoin bet that was opened on June 3. After opening a second $100 million leveraged Bitcoin position, Wynn claimed that orchestrated efforts from major market participants were deliberately targeting his liquidation level. Related: Mystery whale opens $300M leveraged Bitcoin bet: James Wynn alt account? James Wynn blames memecoin ‘cabal’ for extractive practices Wynn blamed the memecoin…

Author: BitcoinEthereumNews
Remittix Gains Buzz While Bitcoin Swift (BTC3) Captures Forward-Looking Holders

Remittix Gains Buzz While Bitcoin Swift (BTC3) Captures Forward-Looking Holders

The post Remittix Gains Buzz While Bitcoin Swift (BTC3) Captures Forward-Looking Holders appeared on BitcoinEthereumNews.com. Advertisement &nbsp &nbsp Disclaimer: The below article is sponsored, and the views in it do not represent those of ZyCrypto. Readers should conduct independent research before taking any actions related to the project mentioned in this piece. This article should not be regarded as investment advice. Remittix (RTX) is making headlines as it develops a PayFi solution for cross-border payments and real-time foreign exchange conversions, backed by early community funding and an ambitious roadmap that includes wallet integrations and exchange listings. Still, execution milestones remain crucial, and the market is closely watching. At the same time, Bitcoin Swift (BTC3) is rewriting the script for presales. Having already raised more than $1.3 million, BTC3 has officially announced an early launch on August 30, with bonus rewards for participants who act before the final countdown ends. That early launch announcement shocked the market in the best way possible, proving BTC3 is ready to deliver faster than expected. Remittix and BTC3 in Focus Remittix offers upside potential if it successfully delivers its wallet milestones, fiat integrations, and depth of liquidity. Traders view RTX as a project that could follow the same adoption path. But BTC3 is already paying out results today. With over 5,500 registered users and programmable staking rewards at every stage, Bitcoin Swift is rewarding participants long before launch. The presale has now reached Stage 7 with tokens priced at $7, creating a rare mix of real payouts and long-term upside. Bitcoin Swift: The Engine of the Next Era Bitcoin Swift (BTC3) is not just another cryptocurrency. It is designed as a defi operating system. By combining programmable Proof-of-Yield, AI-driven smart contracts, zk-SNARK privacy, and decentralized identity, BTC3 is one of the most advanced projects on the market. Its launch on Solana ensures blazing-fast transactions and low fees under $0.01,…

Author: BitcoinEthereumNews
Delio Rehabilitation: Shocking New Bid Despite Bankruptcy Ruling

Delio Rehabilitation: Shocking New Bid Despite Bankruptcy Ruling

BitcoinWorld Delio Rehabilitation: Shocking New Bid Despite Bankruptcy Ruling The South Korean crypto space is buzzing with a truly shocking development: Delio rehabilitation efforts are back in the spotlight. Despite a clear bankruptcy ruling from the Seoul Bankruptcy Court in November 2024, the crypto deposit platform Delio has once again filed for corporate rehabilitation. This marks its third attempt, following two previous dismissals, as reported by Digital Asset. This latest move adds another layer of complexity to an already tumultuous situation for the company and its many creditors, creating significant uncertainty in the market. What is This Delio Rehabilitation Bid All About? Delio, a prominent South Korean crypto deposit platform, currently finds itself in a challenging legal battle. Corporate rehabilitation, in essence, is a legal process designed to help financially distressed companies restructure their debts and operations. The primary goal is to avoid outright liquidation, aiming to give the company a chance to recover and continue operating. Ultimately, this process seeks to protect stakeholder interests by finding a path to viability. However, the current filing for Delio rehabilitation is particularly noteworthy because it comes after the Seoul Bankruptcy Court had already declared the company bankrupt. This declaration initiated the process of liquidating Delio’s assets, meaning the court was actively preparing to sell off what the company owned to distribute funds among those it owed money to. Therefore, this new rehabilitation application directly challenges the ongoing liquidation process, making it a rare and complex legal maneuver. A Persistent Fight: Why Another Delio Rehabilitation Attempt? One might reasonably wonder why Delio would pursue rehabilitation after a bankruptcy declaration. Typically, bankruptcy signifies the end of a company’s operations, leading directly to asset sales. Rehabilitation, on the other hand, offers a potential lifeline. Delio’s management likely believes they can still salvage the company, perhaps by proposing a viable repayment plan or a significant restructuring of its business model. They aim to convince the court that rehabilitation offers a better outcome for creditors than a forced liquidation, which can often result in lower returns for those owed money. This persistent effort highlights the company’s determination, or perhaps desperation, to regain control of its destiny. The legal system does allow for such appeals and filings, even after initial rulings. However, each dismissal and subsequent filing adds to the legal costs and prolongs the uncertainty for all parties involved in the ongoing Delio rehabilitation saga. What Does This Mean for Delio’s Creditors? For Delio’s creditors, this latest filing introduces even more ambiguity and potential delays. They have been patiently waiting for the distribution of assets following the initial bankruptcy ruling. The new rehabilitation application could potentially pause or significantly delay the liquidation process, which means a longer wait for any potential recovery of their funds. This situation undoubtedly causes considerable frustration and financial strain. Creditors will now closely watch how the court handles this third application for Delio rehabilitation. If the court accepts the filing, it would shift the focus from selling assets to evaluating a detailed restructuring plan. Conversely, if it is dismissed again, the liquidation process would likely resume with renewed momentum. This back-and-forth creates significant stress and financial uncertainty for individuals and institutions who entrusted their crypto assets to Delio. Navigating the Complexities of Crypto Platform Failures The situation with Delio is a stark reminder of the inherent risks and regulatory challenges within the nascent cryptocurrency industry. Unlike traditional financial institutions, crypto platforms often operate in a less defined legal landscape, especially concerning insolvency and investor protection. The repeated attempts at Delio rehabilitation underscore the difficulties in resolving such complex cases within existing legal frameworks. This ongoing legal drama also sends a critical signal to other crypto firms and regulators in South Korea and beyond. It emphasizes the urgent need for clearer guidelines and robust frameworks to manage the collapse of digital asset platforms effectively. Furthermore, it highlights the paramount importance of due diligence for users when choosing where to deposit their valuable crypto assets. Transparency and strong regulatory oversight are crucial for building trust and ensuring stability in this rapidly evolving sector. In conclusion, Delio’s latest filing for corporate rehabilitation, despite a prior bankruptcy declaration, represents a critical and unexpected turn in its legal battle. This persistent pursuit of Delio rehabilitation creates further uncertainty for its creditors and poses significant questions about the future of the platform. The coming weeks will be crucial as the Seoul Bankruptcy Court reviews this third application, determining the next chapter in this complex crypto insolvency case. Stay tuned for updates on this unfolding story, as it holds important lessons for the broader digital asset ecosystem. Frequently Asked Questions (FAQs) What is corporate rehabilitation? Corporate rehabilitation is a legal process that allows financially distressed companies to restructure their debts and operations to avoid liquidation, aiming to recover and continue business. Why is Delio filing for rehabilitation after being declared bankrupt? Delio is likely seeking to convince the court that a restructuring plan could offer a better outcome for creditors than liquidation, giving the company a chance to survive despite the previous bankruptcy ruling. How does this affect Delio’s creditors? This new filing could potentially delay the liquidation process, meaning creditors might have to wait longer to recover any of their funds. It adds uncertainty to their claims. What was the initial bankruptcy ruling about? The Seoul Bankruptcy Court declared Delio bankrupt in November 2024, initiating the process of liquidating the company’s assets to distribute among its creditors. What happens if the court dismisses this third application for Delio rehabilitation? If the court dismisses the application, the liquidation process would likely resume with renewed focus, moving forward with the sale of Delio’s assets to repay creditors. What are the broader implications for the crypto industry? This case highlights the need for clearer regulatory frameworks for crypto platform insolvency and investor protection, emphasizing the risks and complexities within the digital asset sector. Did you find this update on Delio’s ongoing legal battle insightful? Share this article with your network on social media to keep others informed about the evolving landscape of crypto regulations and platform stability! To learn more about the latest crypto market trends, explore our article on key developments shaping crypto regulations and investor protection. This post Delio Rehabilitation: Shocking New Bid Despite Bankruptcy Ruling first appeared on BitcoinWorld and is written by Editorial Team

Author: Coinstats
Hyperliquid Short Squeeze: Explosive 200% Surge Creates Million-Dollar Opportunity

Hyperliquid Short Squeeze: Explosive 200% Surge Creates Million-Dollar Opportunity

BitcoinWorld Hyperliquid Short Squeeze: Explosive 200% Surge Creates Million-Dollar Opportunity The cryptocurrency world is no stranger to dramatic market movements, but recent events on Hyperliquid have truly captivated traders. Imagine a scenario where two tokens, XPL and WLFI, suddenly skyrocket over 200% in mere minutes. This wasn’t just a random pump; it was the direct result of a massive Hyperliquid short squeeze, an event that saw a single whale address trigger an unprecedented wave of liquidations and multi-million dollar profits. Understanding the Hyperliquid Short Squeeze Phenomenon What exactly is a Hyperliquid short squeeze, and why does it lead to such explosive price action? In simple terms, a short squeeze occurs when the price of an asset suddenly increases, forcing traders who bet against it (short sellers) to buy it back to cover their positions. This frantic buying further drives the price up, creating a vicious cycle. On platforms like Hyperliquid, with its perpetual futures trading, these events can be particularly intense due to high leverage. Short Selling: Traders borrow an asset, sell it, and hope to buy it back at a lower price to profit from the difference. Liquidation: If the price moves against a short seller significantly, their position is automatically closed by the exchange to prevent further losses, often at a substantial loss. Thin Order Book: A limited number of buy and sell orders available at various price points, making it easier for large orders to move the price dramatically. The Anatomy of XPL and WLFI’s Explosive Surge The recent incident on Hyperliquid unfolded rapidly overnight. A single, savvy whale address initiated a multi-million dollar long position in XPL. This means they were betting on the price to go up. Crucially, they exploited a “thin order book,” meaning there weren’t many sellers willing to offload XPL at current prices. As the whale’s large buy orders hit the market, the price of XPL had nowhere to go but up. This rapid price increase immediately put immense pressure on existing short sellers. Their positions began to bleed, and many were forced into liquidation. This forced buying from liquidations acted as fuel, propelling XPL’s price over 200% in just two minutes. The whale then strategically began to partially close their position, locking in an astonishing $16 million in profit. Industry observers, including mlmabc, described this as one of the most extreme and unusual liquidation incidents ever seen on the platform. Remarkably, a similar dramatic event, also involving a significant Hyperliquid short squeeze, reportedly impacted WLFI around the same time. This suggests a broader vulnerability or a coordinated strategy targeting illiquid assets on the platform. What Lessons Can We Learn from this Hyperliquid Short Squeeze? Such extreme market events offer valuable insights for all participants in the crypto space. They highlight both the immense opportunities and the significant risks involved in leveraged trading, especially on platforms with deep liquidity challenges. What can traders take away from the XPL and WLFI surges? Market Volatility is Real: Even established platforms can experience sudden, dramatic price swings. Order Book Awareness: Understanding the depth and liquidity of an asset’s order book is crucial, particularly for altcoins. Thin order books are ripe for manipulation or large-scale market impact. Risk Management: Leveraged trading amplifies both gains and losses. Setting stop-loss orders and managing position sizes are paramount to surviving a sudden Hyperliquid short squeeze. Whale Activity: Monitoring significant whale movements can sometimes provide early indicators of potential market shifts, though predicting their exact impact remains challenging. This incident serves as a stark reminder that while the crypto market offers incredible potential for profit, it also demands vigilance and a robust understanding of market dynamics. The speed and scale of the XPL and WLFI surges underscore the unique challenges and opportunities present in decentralized finance. In conclusion, the recent Hyperliquid short squeeze involving XPL and WLFI was a truly spectacular event, showcasing the power of concentrated capital against a thin order book. A single whale’s calculated move led to a 200% price surge, multi-million dollar profits, and widespread liquidations. This dramatic episode provides a powerful lesson in market mechanics, risk management, and the inherent volatility of the crypto landscape. It underscores the need for traders to be acutely aware of liquidity, leverage, and the potential for rapid market shifts. Frequently Asked Questions (FAQs) 1. What is a short squeeze in crypto? A short squeeze happens when the price of a cryptocurrency rapidly increases, forcing short sellers (who bet on price drops) to buy back the asset to limit losses, which further drives the price up. 2. How did the whale profit from the Hyperliquid short squeeze? The whale opened a large ‘long’ position, betting on the price to rise. By exploiting a thin order book, their massive buy orders quickly pushed the price up, leading to short sellers’ liquidations and allowing the whale to sell for a significant profit. 3. What is a “thin order book” and why does it matter? A thin order book means there are few buy or sell orders at various price levels. This lack of liquidity makes an asset’s price highly susceptible to large trades, allowing a single large order to cause significant price movements. 4. How can traders protect themselves from a sudden short squeeze? Traders can protect themselves by using stop-loss orders, managing their leverage carefully, diversifying their portfolios, and being aware of the liquidity of the assets they are trading. 5. Is Hyperliquid a safe platform for trading? Hyperliquid, like other decentralized perpetual exchanges, offers high leverage and unique market dynamics. While it provides opportunities, traders must understand its risks, including the potential for rapid liquidations due to events like a Hyperliquid short squeeze. Did this article shed light on the incredible volatility and potential profits in crypto trading? Share this insight with your fellow traders and crypto enthusiasts on social media! Let’s keep the conversation going about market dynamics and smart trading strategies. To learn more about the latest crypto market trends, explore our article on key developments shaping cryptocurrency price action. This post Hyperliquid Short Squeeze: Explosive 200% Surge Creates Million-Dollar Opportunity first appeared on BitcoinWorld and is written by Editorial Team

Author: Coinstats
Why Shiba Inu Could See a Bounce Despite Market Slump

Why Shiba Inu Could See a Bounce Despite Market Slump

The post Why Shiba Inu Could See a Bounce Despite Market Slump  appeared on BitcoinEthereumNews.com. Leading meme coin Shiba Inu (SHIB) has fallen 2% today amid broader market weakness, maintaining a largely sideways trajectory it has held since the beginning of August.  This muted performance reflects the overall market’s cautious sentiment, with investors remaining hesitant. However, readings from two key on-chain metrics suggest that SHIB could be poised for a rebound. SHIB Might Be Poised for a Bounce An assessment of SHIB’s Liquidation Heatmap reveals potential buying pressure that could spark renewed upward momentum. According to Coinglass data, a concentration of leveraged positions and liquidity exists above the meme coin’s price near the $0.0000135 region.  For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. SHIB Liquidation Heatmap. Source: Coinglass A Liquidity Heatmap is an on-chain tool that visualizes areas where large amounts of stop-loss orders, leveraged positions, or buy and sell orders are clustered. These zones act as magnets for price action, as the liquidation of leveraged trades can create rapid price movements.  For SHIB, the heatmap indicates that sufficient liquidity exists just above its current price of $0.0000122. This means that a coordinated wave of buying could push the meme coin higher if market conditions improve. Furthermore, SHIB’s Net Unrealized Profit/Loss (NUPL) has remained mostly negative throughout August, indicating that token holders have been sitting on unrealized losses since the start of the month.  SHIB NUPL. Source: Santiment This metric reflects the net profit or loss of all coins moved on-chain, based on the price at which they were last moved. A positive NPL suggests increasing profitability across the network, while a negative one, like SHIB’s, suggests many holders are in loss. In such situations, traders are often reluctant to sell at market prices to avoid realizing losses, so they tend to…

Author: BitcoinEthereumNews
Bitcoin Slips Below $110K After $2.7B Whale Dump: Could Wave C Correction Target $105K Next?

Bitcoin Slips Below $110K After $2.7B Whale Dump: Could Wave C Correction Target $105K Next?

Bitcoin (BTC) tumbled below the critical $110,000 mark on Tuesday after a whale offloaded 24,000 BTC worth approximately $2.7 billion. Related Reading: REX Financial CEO Picks Solana Over Ethereum: Here’s Why The massive sell order sparked a sharp market reaction, wiping out $205 billion from crypto market capitalization and triggering over $930 million in liquidations across leveraged positions. This sudden downturn pushed BTC to its lowest levels in nearly two months, with intraday lows near $109,000. Analysts warn the correction could extend further, as technical patterns point to a possible continuation of the Elliott Wave C move toward $105,000. Technical Signals: $105K or $108K in Play Market analysts project that Bitcoin’s rejection at $117,000 over the weekend set the stage for this decline. According to Elliott Wave Theory, Wave C often mirrors Wave A in length, making the $105,000 zone a prime target. This area also coincides with Bitcoin’s Point of Control since April and the anchored VWAP support line, adding weight to the bearish case. However, a strong counter-argument exists. The $107,000–$108,000 range, representing the 61.8% Fibonacci retracement of the June-to-August rally, holds significant buying interest. Data from Bookmap shows clustered orders at this level, suggesting it could act as a reversal point if buyers step in aggressively. Invalidation Levels and Market Outlook Despite the bearish tone, analysts caution that a Bitcoin daily close above $110,000 could flip sentiment. Such a move would indicate a possible liquidity grab rather than a full-blown Wave C continuation. A stronger confirmation would come if Bitcoin reclaims $112,000, signaling the downside break was corrective, not impulsive. For now, traders are advised to watch the $108,000 support zone closely. A breakdown could accelerate selling pressure toward $105,000, while a decisive bounce might restore short-term momentum. BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview  What to Expect Next for Bitcoin Price Bitcoin’s sharp sell-off gives a clear picture of the delicate balance between whale activity, technical structures, and macroeconomic uncertainty. In the near term, analysts caution that downside risks remain elevated, with $108,000 emerging as the key support level. A failure to hold this zone could pave the way for a deeper correction toward $105,000. Related Reading: Is $105,000 The Bitcoin Bull Run Killer Or Just Noise? Top Analyst Explains On the flip side, a recovery above $110,000, and especially $112,000, would invalidate the bearish Wave C scenario, signaling that the pullback was corrective rather than the start of a larger decline. Cover image from ChatGPT, BTCUSD from Tradingview

Author: NewsBTC
AI16Z near $0.10 after 10% drop – Could whales spark reversal?

AI16Z near $0.10 after 10% drop – Could whales spark reversal?

The post AI16Z near $0.10 after 10% drop – Could whales spark reversal? appeared on BitcoinEthereumNews.com. Key Takeaways AI coin struggle in the last 24 hours with AI16Z in the lead. Liquidity below recent price action could force another drop but buyers were stepping up. The broader cryptocurrency market was in decline, but AI-focused tokens bore the brunt of the sell-off as investors rotated capital out of the sector. The hype surrounding Solana [SOL] -based AI projects was fading rapidly, with bearish sentiment accelerating the drop. At press time, the total market capitalization of AI coins had fallen to $30.70 billion, marking a 3% decline on the day. Trading volume also saw a sharp decrease, plunging 15%, according to data from CoinMarketCap. Even large-cap AI tokens weren’t spared, suffering similar losses. One notable example, ai16Z [AI16Z] , had dropped 10% at the time of writing. Despite the steep decline, its price was hovering near a potentially favorable support zone, suggesting a possible rebound opportunity. AI16Z price has been trading in a triangle pattern since the start of April. The price has failed several times to break above the slanting resistance since the high on the 12th of May. Price was trading below the SuperTrend indicator but it could reverse as the pattern nears breakout. The AI coin was now at a zone that saw it surge about 300% in only one month. Alternatively a breakdown below $0.10 could trigger more sell-off. The feeling around AI16Z was mixed as price action was bearish but on-chain metrics were shifting. Source: TradingView Looking at the liquidation heatmap, AI16Z was forming deeper liquidity levels below $0.10 than any other level. The most dominant being at $0.99. This indicated that the odds of a further drop were high as price tends to follow liquidity. Some traders could exit their shorts while others take their longs just below this $0.10 level. This…

Author: BitcoinEthereumNews
Analyst Reveals Bitcoin and Ethereum Expectations, Warns: “These Levels Could Be Tested Again by the End of September!”

Analyst Reveals Bitcoin and Ethereum Expectations, Warns: “These Levels Could Be Tested Again by the End of September!”

The post Analyst Reveals Bitcoin and Ethereum Expectations, Warns: “These Levels Could Be Tested Again by the End of September!” appeared on BitcoinEthereumNews.com. Despite the mild statements from Fed Chair Jerome Powell, Bitcoin and altcoins experienced a sharp correction. Bitcoin has fallen to around $110,000, dragging down the overall cryptocurrency market as forced liquidations, along with increased short-term volatility ahead of key U.S. economic data this week, have also weighed on the cryptocurrency market. At this point, Bitcoin fell to a seven-week low due to strong downward market pressure from the liquidation of large leveraged positions, while Ethereum fell to $4,300. Speaking to The Block, Deribit head of research Sean Dawson said it had been a bloody start to the new week. At this point, the analyst argued that BTC is likely to retest $100,000 by the end of September, while ETH is likely to retest $4,000. According to Dawson, the recent correction has caused an increase in volatility, with BTC’s daily implied volatility rising from 15% to 38% and ETH’s from 41% to 70%. Dawson attributed the sudden surge in volatility to investors rushing to hedge ahead of the release of second-quarter US GDP and employment data. Dawson also noted that the volatility in options markets reflects investors’ cautious approach. Based on the data, the analyst noted that the 25-delta slope in the options market has turned negative for both assets, indicating increased demand for put options. This reflects a short-term bearish trend. At this point, Dawson predicted that BTC is likely to retest $100,000 by the end of September, while ETH is likely to retest $4,000. “The data shows us that options traders prefer put options over call options. This is the strongest downside protection demand we’ve seen in the last two weeks, with investors appearing to be preparing for a potential retest of the $4,000 levels for ETH and $100,000 for BTC by the end of September. *This is not…

Author: BitcoinEthereumNews