The new Bitcoin correction took place after touching its new high, making around IDR 7.2 Trillion a liquid leverage position.
All happened in just 1 Hour due to a buy position using debt or leveraged funds on several major exchanges.
IDR 7.2 Trillion Bitcoin Lost Due to Leverage
Bitcoin just refused to go higher than the area around Rp.863.97 million on March 15, 2021.
But unfortunately, this correction resulted in a sizeable loss of Bitcoin due to the use of considerable leverage.
Glassnode co-founders Jan and Yann stressed that the correction would be the biggest correction in an hour.
They also emphasize that more than half of the existing long positions in the futures market appear to be liquidated through margin calls or by force.
This is due to the 20 times leverage or debt funds used by the majority of these positions.
However, data from Bybt shows that around IDR 11.5 Trillion Bitcoin was liquidated in just 15 minutes when this correction occurred.
One of the Biggest Corrections
According to data from Datamish, in the last 24 hours there were 292 buy positions on the derivatives market of the BitMEX exchange worth IDR 1.36 trillion.
On the Bitfinex exchange, there were 488 liquidated positions worth around IDR 1.43 Trillion at the same time as BitMEX.
The second biggest day of liquidation is seen on February 22, 2021, where Bitcoin fell from a high of IDR 839 million to IDR 676.6 million.
According to a report from Cointelegraph, around Rp.84.9 trillion appears to be liquidated at the time of correction on February 22, 2021.
Since its highest price at Rp.878 million, Bitcoin has been seen correcting 12.3% towards Rp.770 million until the trading session on March 16, 2021.
Currently Bitcoin is trying to recover but it still has some obstacles.
But the current correction is the third downside movement on these positive conditions.
Bitcoin Fear and Greed data also shows that currently market conditions are very “greedy” or filled with buying impulses.
However, this correction has brought the index to return to “greedy” which indicates a potential for quite high selling pressure.
Currently Bitcoin is still hindered by several negative sentiments, especially due to its price which has just touched its highest point.
In addition, Bitcoin is also hindered by the sentiment of American bonds whose profits continue to rise, thus pressing Bitcoin.