MICA Daily｜Is the bullish trend just a shakeout before a rise? Last night, both bulls and bears were wiped out, with $150 million in positions liquidated

Yesterday was generally the first active trading day after the Western Christmas holiday. Although market liquidity was still in holiday mode close to New Year’s Eve, the cryptocurrency market at least broke out of the narrow range of USD, which was at 88,000 USD. It once surged past 90,000 USD in the afternoon, causing nearly 110 million USD in short positions to be liquidated. But good times don’t last long. This upward momentum didn’t sustain for long, just like the multiple ups and downs in December. In the evening, when the US market opened, prices fell back to 87,000 USD, liquidating nearly 40 million USD in long positions, resulting in a scenario of both longs and shorts being wiped out again. ![]https://img-cdn.gateio.im/social/moments-9ba9c4c54e-fc6b2744df-153d09-6d5686 This strange trend has been discussed several times before. Since the second half of the year, the crypto market has been mainly characterized by “liquidation trends.” As December approached, this trend became even more apparent. Due to the proximity to Christmas, some jokingly referred to this kind of candlestick pattern as a “Christmas tree structure,” which appeared frequently during the holiday period. However, due to the liquidity drying up in the crypto market and fewer investors entering during the holiday, the liquidation amounts have remained below 300 million USD. In the past, when Bitcoin charts showed this kind of trend, the liquidation amounts were usually around 500 million USD or more. This indicates that the trading capital remaining in the crypto market is really not much.