Bitcoin has been dealing with significant pains to bulls in recent weeks and fresh data has shown how much it has dealt with the pain.
On 10th Jan, in one of the tweets, Glassnode, an on-chain analytics firm has revealed that longing Bitcoins had suffered a rerun of May when the prices began to fall below $30,000. According to the Longs Liquidations Dominance Metric of Glassnode, the major number of liquidations involved longs over the new year.
This is not even surprising but the extent of losses incurred has put that past few weeks on par with May on the basis of longs vs. shorts.
Researchers have also commented that BitcoinLong Liquidation Dominance has hit 69% and this is the highest level since May 2021’s deleveraging event.
While taking into consideration the other data, the period from the end of July to late November saw the opposite trend and may lead to an unexpected bull run number of times.
Long Liquidations had not always marked local price bottoms but it has turned around on a short time frame that has been vocal.
Bitcoins have been oversold at current prices by historical standards.
Benjamin Cowen, the quant analyst, tweeted on Saturday that he is quite convinced that they will not revisit those prices but yes, some short term relief would be nice.
He has also commented that the Crypto Fear and Greed Index is hitting rare lows over the weekend that signifies extreme fear among the participants of the market.
These types of occurrences are said to be followed by sentiment and price recovery.
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