BTC Today (18/12): Why the Intense Selling and Buying Pressure in a Single Session?
- What Triggered Bitcoin’s Wild Price Swings?
- How Did Liquidation Carnage Unfold?
- Is the "10 AM Algorithm" Real?
- What’s Next for BTC After This Whiplash?
- FAQ: Your Bitcoin Volatility Questions Answered
Bitcoin experienced a chaotic two-hour session on Wednesday (18/12), with prices swinging violently in both directions. A rapid $3,000 surge triggered a classic short squeeze, liquidating $106 million in short positions, only to reverse into a long squeeze, wiping out $52 million in long positions. Analysts point to the "10 AM algorithm" and U.S. market open as key drivers. Over 120,000 positions were liquidated in 48 hours, totaling nearly $400 million. Here’s a deep dive into the action.
What Triggered Bitcoin’s Wild Price Swings?
Bitcoin’s price went on a rollercoaster ride during Wednesday’s session, surging $3,300 in just 30 minutes before crashing $3,400 in the next 45 minutes. The BTCC team noted this was a textbook short squeeze—forced buying by short sellers scrambling to cover positions—followed by an equally brutal long squeeze. The volatility coincided with the U.S. stock market open (10 AM EST), a time when liquidity shocks often amplify crypto moves. "It’s like watching a heavyweight boxing match where both fighters get knocked out," quipped one trader.
How Did Liquidation Carnage Unfold?
Data from CoinGlass reveals the damage: $108 million in BTC positions were liquidated in four hours, with shorts ($75 million) hit harder than longs ($32 million). ethereum mirrored the chaos but skewed long squeezes, shedding $340 million in 24 hours. The chart below captures the bloodbath:
(Source: CoinGlass)
Is the "10 AM Algorithm" Real?
ZeroHedge and others flagged the recurring 10 AM EST volatility pattern—dubbed the "algorithm" by traders. The theory? Institutional algorithms rebalance portfolios at market open, creating liquidity gaps. "It’s not conspiracy if it happens every Wednesday," joked a Crypto Twitter pundit. Historical TradingView charts show similar spikes around this time, though skeptics call it confirmation bias.
What’s Next for BTC After This Whiplash?
While the dust settles, analysts warn of aftershocks. The BTCC team notes open interest remains high, a tinderbox for more squeezes. Key levels to watch: $42,000 (support) and $45,000 (resistance). "This wasn’t just noise—it was the market digesting ETF speculation and macro uncertainty," said one analyst. Pro tip: set tighter stop-losses during U.S. trading hours.
FAQ: Your Bitcoin Volatility Questions Answered
Why did Bitcoin drop after the initial surge?
Profit-taking and long liquidations kicked in. Traders who caught the rally sold quickly, while overleveraged longs got wiped out.
How often do these squeezes happen?
Monthly, but December’s was extreme due to year-end liquidity crunches and ETF hype.
Should I trade during these volatile windows?
Only with risk management. As the BTCC team says, "Volatility is a double-edged sword—great for scalpers, deadly for rookies."
