Bitcoin [BTC] Analysis: Over $12 Billion Long Contracts Liquidated On Bitmex In 2019

Published December 30, 2019 | Updated December 30, 2019

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Bitcoin [BTC] Analysis: Over $12 Billion Long Contracts Liquidated On Bitmex In 2019

BitMEX closes out the year nearing $20 billion in total liquidations on its XBT contract as the price of Bitcoin balances lightly at key support levels at $7,200 USD. Despite the bloody situation across the board in 2019, BTC traders still hold faith in a bullish reversal as we head to the block reward halving in May.

XBTUSD contract liquidations soar by 20%

BitMEX XBT/USD contract liquidations soared by over 20% in 2019 from the figure recorded in 2018 to top $19.9 billion over the course of the year. With the leverage ratio averaging 25X over the course of the year, close to $800 million USD in traders funds were liquidated during the period. Arthur Hayes must be a happy man closing out the year in such profit.

Data collected on Datamish shows bulls were heavily impacted in the bloodshed as a total of $12.715 billion worth of XBT/USD long contracts were liquidated, representing 63% of the total liquidations. The bulk of the contracts were liquidated in the final 6 months of the year as the market turned bearish from yearly highs of $13,800 USD.

Despite the dominance of XBT longs liquidated on BitMEX, the total value increased by partly 17.6% in 2019 indicating a larger growth on the number of short contracts liquidated. Following a rather successful year that  has seen BTC grow by 80%+, bears have suffered compared to 2018 as the value of XBT shorts liquidated, grew by 30% to $7.232 billion USD.

A positive 2020 for BTC?

Despite the rising value of liquidated XBT contracts, traders seem to hold on faith of a possible bullish run come early 2020. Could we be in a consolidation phase First of all, the halving is only a few months away, and there is a tendency in the market to accumulate BTC some months before the event in anticipation of a supply cut. Even if demand for BTC remains relatively the same, the price is expected to rise (and possibly hit an all-time high) come the end of next year.

Moreso the longer timeframe charts shows a possible flipping in price in either direction as the price balances lightly on key support region between $7,000 USD and $7,300 USD.

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

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Lujan Odera 388 Articles
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.
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