Journalist
Posted:
- There have been more long liquidations in the new week.
- The total market capitalization remained around $2 trillion.
The cryptocurrency market saw significant liquidation volumes over the past week as prices fluctuated. Short traders in particular, like Bitcoin, were hit hardest by these liquidations [BTC] showed some positive movement.
Meanwhile, memecoins continued to see a decline in market cap, setting a cautious tone for the crypto week ahead.
Liquidations in the coming crypto week
Last week’s market volatility resulted in more than $690 million in liquidations, according to data Mint glass. This highlighted the increased risk and uncertainty in the crypto space.
Notably, more than $418 million of these liquidations came from short positions, indicating that many traders who were betting on price declines were caught off guard by the recent price increases.
Source: Coinglass
In contrast, the past week saw a higher volume of long-term liquidations, totaling approximately $276 million.
This shift signaled a change in market sentiment, as traders expecting profits were forced to exit their positions due to price volatility.
As we enter the current week, there has been a noticeable increase in the number of long-term liquidations, signaling potential challenges for those betting on further price increases.
This shift adds to the uncertainty surrounding the market direction for the upcoming crypto week.
Memecoins face a further decline
Memecoins have been in a downward trend for several weeks and the outlook for the coming crypto week remains bleak.
Data shows that the market capitalization of memecoins has fallen by over $3 billion from the beginning of the month to date, to around $35 billion at the time of writing.
Big memecoins like Dogecoin [DOGE]Shiba Inu [SHIB]and Pepe [PEPE] have all seen declines in the past 24 hours, suggesting the negative trend for memecoins could continue.
Cautious optimism ahead
While Bitcoin’s recent positive movement and liquidation data indicate a possible shift in sentiment, the uptick in long liquidations indicates that traders remain divided on the direction of the market.
On the other hand, memecoins have started the week on a negative note, with declining market caps contributing to the bearish sentiment.
Overall, the upcoming crypto week promises to be eventful, with traders keeping a close eye on key levels and trends of various digital assets.