For the first time since November 2022, Bitcoin rose above $21.4k. In fact, at one point on Monday, BTC was trading above all its major EMAs on the daily timeframe.
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Traders who had long positions opened managed to reap whopping profits. A recent tweet by analytics platform Nansen revealed that a Bitcoin trader became a millionaire, thanks to the latest surge. Chalking out how its official tweet revealed,
“With a BTC long position on GMX, a trader turned $167K into more than $2.2M.”
As shown below, the trader’s leverage stood quite high, at 140.36x. The position was opened at $18.1k, probably on January 12, 2023.
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Owing to the slight retracement noted by Bitcoin on the short timeframes, the $2.2 million had already shrunk down to $1.99 million at press time. Real-time data from Nansen indicated that the leverage to was re-adjusted to 162.37x, likely indicating that the trader expects the price to continue rising. However, the said move could have also been undertaken to quickly cover up for the latest shrink.
On Monday, the position’s liquidation price seemed to be a few miles away from the trading price. It stood at $17.94k at press time, while BTC was trading at $20.7k.
State of Short Bitcoin Traders
On one hand, long traders have been minting profits. On the other, short traders have been getting rekt. Quite recently, Bitcoin futures’ short liquidations were at their highest level since July 2021.
However, with the market stabilizing and the double-digit gain figures changing to single-digits, the liquidation is starting to decrease. Over the past 12 hours, BTC worth only $33.15 million was liquidated when compared to early January 14th’s $160 million.
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