The cryptocurrency market faced a sharp wave of liquidations, totaling $137 million in the past 24 hours, according to data from BITX. The move comes amid rising volatility, shifting sentiment, and critical resistance levels across major assets.
Longs Take the Hardest Hit
Of the total liquidations, long positions were hit hardest, accounting for $81.41 million — a clear indication that bullish traders were caught off guard by sudden price pullbacks. In contrast, short positions made up $55.65 million, showing that the market moved in both directions during the turbulence.
“This kind of cross-liquidation wipeout suggests a leveraged market facing uncertainty,” one analyst noted.
Ethereum Takes the Biggest Blow
Interestingly, Ethereum (ETH) led the liquidation count with a staggering $41.12 million, outpacing Bitcoin (BTC), which recorded just $6.07 million in liquidations. This indicates that ETH traders were more heavily leveraged, possibly betting on a continued climb toward the $4,000 level.
Other altcoins likely contributed to the broader liquidation totals, though detailed breakdowns have yet to be released. ETH’s recent upward momentum may have encouraged overleveraged trades, creating an environment ripe for correction.
What Triggered the Liquidation Cascade?
While there was no single event behind the flash liquidations, several contributing factors emerged:
- Low weekend liquidity led to sharper moves in both directions
- Macro uncertainty including inflation concerns and potential rate changes
- Technical rejections near major resistance zones in BTC and ETH charts
This is not uncommon in crypto markets, where high leverage ratios and thin order books can lead to outsized reactions to relatively small price moves.
Market Outlook: Volatility Remains Elevated
Despite the pullback, overall sentiment remains cautiously optimistic. Bitcoin continues to hold key support above $66,000, and Ethereum remains above its breakout level of $3,675.
However, leverage ratios across exchanges remain high, meaning that further volatility — and potential liquidations — could follow if momentum breaks down again.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.