In a significant downturn for the cryptocurrency market, more than $400 million has been liquidated in the past 24 hours, marking one of the most severe sell-offs in recent weeks. Bitcoin, which had been maintaining a trading level above $113,000, saw a sharp decline, dropping toward $111,800 and breaking through a critical support level, raising concerns about its immediate viability.
Ethereum emerged as the most affected asset in this downturn, experiencing liquidations exceeding $178 million. Bitcoin followed with liquidations of $57 million, while Solana faced losses of around $24 million. The sell-offs extended to other altcoins as well, with notable forced closures of Dogecoin and XRP, indicating a broader weakness in the market.
Overall, more than 128,000 traders were liquidated during this tumultuous period. The majority of these liquidations were long positions, which accounted for around $333 million in wiped-out trades compared to $73 million from short positions. This imbalance highlights how traders holding overly leveraged bullish positions were hit particularly hard.
Data from various exchanges revealed that the bulk of the liquidations stemmed from Hyperliquid and Bybit. Hyperliquid alone recorded a staggering $62.5 million in erased positions, with Binance and OKX closely following in the ranks. This activity illustrates that market stress was felt across multiple trading platforms.
Technical analysis reveals that Bitcoin is slipping below the 50-day exponential moving average (EMA) on its daily chart, further complicating its short-term outlook. Traders are now turning their attention to the 200-day EMA, situated around $106,000. If this level fails to hold, further sell-offs could push Bitcoin towards psychological support levels near $100,000.
Compounding the bearish sentiment is an uptick in selling volume, which suggests a growing hesitancy among buyers. The recent liquidation events imply that leveraged long positions may be nearing exhaustion, potentially resetting funding rates and opening the door for a more robust recovery in the weeks ahead.
Nevertheless, the immediate risks remain high. Bitcoin’s struggle to reclaim the $113,000 mark has positioned the market precariously. As traders closely monitor whether Bitcoin can maintain stability above $110,000, the looming question remains: Is a decline toward $106,000 inevitable? The next moves in the cryptocurrency market are poised to be critical as traders navigate this volatile landscape.
