The cryptocurrency market experienced over $841 million in forced liquidations within the last 24 hours leading to Friday, May 30, during the late North American trading session. Bitcoin’s price fell below $105k, causing significant forced liquidation in the wider altcoin market, particularly among memecoins.
Market data from Coinglass reveals that more than $747 million in forced crypto liquidations involved long traders, with Bitcoin’s whale-long traders, including James Wynn, being a significant part of this trend, leading to short-term pessimism.
Short crypto traders faced around $80 million in forced liquidations over the past 24 hours, increasing the likelihood of a long squeeze despite the general optimism for a market recovery over the weekend.
The outlook for the altcoin market in the next few days remains positive despite the ongoing market downturn. Bitcoin’s fear and greed index sitting at around 60 percent indicates greed among crypto traders.
The improvement in crypto regulatory frameworks in major jurisdictions, spearheaded by the United States, has attracted more institutional investors to the web3 space. This has led to increased anticipation among crypto investors for a bullish recovery soon, possibly resulting in a parabolic rally shortly.
Although the current bearish sentiment could postpone a bullish recovery, especially if Bitcoin’s price drops below $100k again, a significant surge in bearish traders might trigger a substantial short squeeze if Bitcoin’s price rebounds above $110k in the near future. The bullish crypto outlook is reinforced by growing institutional adoption and supportive regulatory environments from major jurisdictions. Therefore, adopting a cautious approach in the following days may be prudent, contingent on Bitcoin’s price staying above $96k.
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