Bitcoin’s liquidation profile follows completely different pattern than 2021, analysts say

With a lower lever effect in the system, Bitcoin liquidation events no longer resemble the net oscillations of 2021.

Bitcoin (BTC) Liquidations take place completely differently from the last Haussier market, says Matrixport of the Blockchain company, noting that despite daily liquidations reaching 600 million dollars sometimes, prices have found a background with minimal follow -up.

In A research note on February 19Analysts note that the current dynamic contrasts strongly with 2020 and 2021, when the high lever effect on the market has led to extreme volatility.

“Unlike the last bullish market, where liquidations have launched extreme volatility, this time, even with $ 600 million in Bitcoin and Ethereum liquidations on certain days, prices find a background with a minimum of follow-up.”

Markus Thielen, independent analyst

Thielen suggests that the lever effect in the system is now “relatively low”, adding that traders have also become “more strategic” in the definition of arrest losses. Spot approval Bitcoin negotiated funds By the American Commission for Securities and Exchange may also have strengthened a stronger conviction on the market, he added.

With Bitcoin which is no longer considered as a high risk asset, the question is no longer if it could go to zero but how it could drop. Although previous data show that liquidation sales are limited, risks remain.

Analysts indicate to the inter-enchange flow pulse indicator, which follows the Bitcoin movement between the spot and derivative markets. As a rule, more BTC flow in derivatives signals an upward impulse. However, the indicator is currently flashing, suggesting that Bitcoin could face more resistance before a break.