Assessing the crypto week ahead after $690M in liquidations

Journalist

Posted: September 16, 2024

There have been more long liquidations in the new week.
The overall market cap remained at around $2 trillion.

The cryptocurrency market experienced significant liquidation volumes in the past week as prices fluctuated. Short traders, in particular, bore the brunt of these liquidations, as Bitcoin [BTC] showed some positive movement.
Meanwhile, memecoins continued to see a decline in market capitalization, setting a cautious tone for the crypto week ahead.
Liquidations in the crypto week ahead
Last week’s market volatility led to over $690 million in liquidations, according to data from Coinglass. This highlighted the elevated risk and uncertainty in the crypto space.
Notably, over $418 million of these liquidations came from short positions, suggesting that many traders betting on price declines were caught off guard by recent price increases.
Source: Coinglass
In contrast, the previous week saw a higher volume of long liquidations, totaling around $276 million.
This shift indicated a change in market sentiment, as traders expecting gains were forced to exit positions due to price volatility.
As we enter the current week, there’s been a noticeable uptick in long liquidations, signaling potential challenges for those betting on further price increases.
This shift adds to the uncertainty surrounding the market direction for the crypto week ahead.
Memecoins face further decline
Memecoins have been in a downtrend for several weeks, and the outlook for the crypto week ahead remains bleak.
Data shows that from the beginning of the month to now, the market capitalization of memecoins has dropped by over $3 billion, sitting at around $35 billion as of this writing.
Major memecoins such as Dogecoin [DOGE], Shiba Inu [SHIB], and Pepe [PEPE] have all seen declines in the last 24 hours, suggesting that the negative trend for memecoins may continue.
Cautious optimism ahead
While Bitcoin’s recent positive movement and liquidation data suggest a potential shift in sentiment, the uptick in long liquidations indicates that traders remain divided on market direction. 
On the other hand, memecoins have started the week on a negative note, with declining market capitalizations adding to bearish sentiment.
Overall, the crypto week ahead promises to be eventful, with traders needing to monitor key levels and trends across various digital assets closely.

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