Despite yesterday’s 8% drop in the price of Bitcoin (BTC), which caused many BTC bulls to leave the market, the altcoin market fell slightly and ETH was looking to challenge the trend with a little test of growth in the current constant Bitfinex.

However, altcoin bears are rapidly emerging from the forest, and short shorts against many major cryptocurrencies are piling up rapidly in the midst of Bitcoin’s recent plunge.

As many alternative currencies continue to rise despite an increase in short positions, many of the leading cryptocurrencies may face increased liquidation regardless of which direction the markets ultimately go.

Bitcoin craves hard work
BTC has cut long positions on Bitfinex by more than 10%, falling from 28,800 to just under 26,000. Positions on BTC / USD cards have increased by almost 16%.

The crash also led to a wholesale liquidation on cryptocurrency exchanges, with over $ 71 million in margin requirements on BitMEX and $ 66 million on Binance Futures in the last 24 hours – the third largest daily settlement in the past month, according to Cryptometer.

Rapid bulls on ether remain stable
While altcoins do not lead to heavy liquidations on futures platforms, a sharp spike in short trades coupled with hard-nosed bulls can create the perfect storm for a strong round of margin calls.

While many bitcoin bulls fell quickly, ETH derivatives rose slightly by 2.5% – currently testing the recent record highs of 1.77 million on Bitfinex.

Ongoing buying activity indicates that some market participants expect Ether to continue to gain ground against the dollar despite bearish signals in the bitcoin markets.

Altcoin shorts are suddenly rising
However, the Bitcoin crash also led to a sharp jump in ETH / USD card positions, which increased by more than 18% in less than 60 minutes.

Similar trends can be seen in other leading altcoin markets: Litecoin (LTC) length declined only 2.5% as short positions rose more than 30% and XRP bulls retreated only 3.5% as short positions fell 15% %. hours. Few.

Source: CoinTelegraph